USD/KRW Price Analysis: South Korean won crashes 1.50% on N. Korean leader’s illness
- USD/KRW hits fresh two-week highs, rises sharply by about 1.50%.
- Broad dollar recovery, N. Korean Leader Kim’s illness drives spot higher.
- South Korea’s April exports collapse amid coronavirus pandemic.
USD/KRW extends the range breakout to the north and flirts with a new two-week high of 1,238.96, rallying 1.50% so far in Tuesday’s Asian trading.
South Korean won fell sharply against the greenback following reports that the North Korean Leader Kim Jong-Un is ill and undergoing a cardiovascular procedure. Further, NBC News reported that the North Korean leader is brain dead, which also weighs down on the won.
Adding to the bearish sentiment around the Asian currency, South Korea’s exports collapsed for the first 20 days of April by nearly 27% YoY, underscoring the coronavirus impact on the global supply chains and demand.
Further, liquidity injections by the Bank of Korea (BOK) and broad-based US dollar recovery also collaborate with the relentless rise in the cross. The South Korean central bank provided 270 billion won of liquidity via weekly operations.
South Korean won: Levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
