The South Korean won slipped in value on Thursday against the world's reserve currency in the aftermath of U.S. Federal Reserve Chair Janet Yellen saying interest rate reductions are likely later this year, according to Bloomberg.
The won dipped after Yellen, following Wednesday afternoon adjournment of her first round of presiding over the Federal Open Market Committee, also noted the body is moving forward with a $10 billion reduction to monthly asset purchases. Her peer at the Bank of Korea will be Lee Ju Yeol, whose nomination was confirmed by South Korea's parliament on Wednesday.
"The prevailing view in the market is that the dollar-won rate is locked within a range," a foreign-bank dealer told Reuters on Thursday. "I don't think we have seen big dollar supplies from exporters so far, so we'll have to see what type of demand-related trades emerge in the afternoon."
The won slumped roughly 0.4 percent against the U.S. dollar on Thursday, plunging to its lowest value against its rival since the end of last month.
The won's losses to the dollar on Thursday marked the currency's third-straight bearish day against its rival monetary unit, according to Reuters.
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