The South Korean won lost value on Tuesday against the world's reserve currency as speculation mounted that the U.S. Federal Reserve is preparing to taper economy-spurring monetary stimulus measures as a result of stronger economic data , according to Bloomberg.
The won pushed to its top rate in more than one week against the U.S. dollar after the Institute for Supply Management index rose to 57.3 in November, representing its top rate since the second quarter of 2011.
Chief economist Chang Jaechul with Citibank Korea Inc. in Seoul stated in a Monday research note that the won will push ahead next year, propelled higher by South Korea's stronger economic growth and the nation's surplus with current accounts.
The won dropped about 0.4 percent against the dollar on Tuesday, notching its biggest drop against its rival since November 21. The won has advanced roughly 7.7 percent against the dollar since late June.
The won's losses also are linked with the Japanese yen performing poorly, according to The Business Recorder. Japanese officials have implemented aggressive monetary easing programs for nearly one year.
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