South Korea’s Won Reverses Loss After RBA’s Unexpected Pause
This article is for subscribers only.
South Korea’s won rose, reversing an earlier decline, after the Reserve Bank of Australia’s unexpected pause on interest rates Tuesday weakened expectations for further monetary easing in the Asian nation.
The won snapped a two-day decline and five-year Korean government bonds fell after the RBA left the overnight cash rate at 2.25 percent while saying further cuts could be needed to bolster economic growth. The Bank of Korea has refrained from joining global central banks in lowering borrowing costs in 2015. Consumer prices rose 0.5 percent in February, the smallest increase in 15 years, Statistics Korea reported Tuesday.