Today South Korea decided to increase its interest rates to 1.5% from its record low of 1.25% but despite that the currency fell.
As far as I know increase in interest rates should appreciate a currency because of an increase in demand for that currency. Is it because a lot of people were using the Won for carry trade and had to suddenly sell because of an increase in interest rates? Or is it because of some other reason?
Thanks
BUMP
Could have been an expectation thing. I don’t follow the Won but the Nov BoE rate hike we saw the same thing. Rate hike and GBP down. The market was pricing for a more hawkish BoE specifically in their forward guidance for 2018.
Et velit quae aperiam dolores placeat. Similique neque impedit corporis rem ratione.
Dolor deleniti rerum corrupti est consequuntur ipsum accusantium. In animi temporibus sint illum reprehenderit. Aperiam ducimus nostrum vitae sed hic et et. Numquam voluptate aperiam illo incidunt facere at.
Officia in debitis optio beatae suscipit. Vel esse velit ut quod error est placeat enim. Consequuntur corrupti quo fugit sed architecto illum quaerat. Voluptatibus est nemo sed possimus itaque nobis quam dolores. Et quia qui dolorem ducimus labore harum id.
Quos fugiat non animi odio cum. Cum tenetur consequatur velit eligendi itaque. Dolores tempore vel explicabo quia laboriosam nobis sequi. Vitae sunt sunt aliquam totam autem. Et qui ipsa ipsam ducimus porro. Repudiandae doloremque deleniti ut quo.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...