The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Song Joong-ki marries British woman, expects baby

  • 3

    Suicidal pedestrian saved over Han River bridge

  • 5

    US four-star general warns of war with China in 2025

  • 7

    K-pop releases for February

  • 9

    Youth, foreign drug offenders increase threefold in 5 years

  • 11

    INTERVIEWBusan has potential to be world-class city, says mayor

  • 13

    NK rejects alleged arms trading with Russia, warns of 'undesirable result'

  • 15

    Samsung to introduce low-carbon diet for employees to help tackle climate change

  • 17

    Plum trees, pheasants and promises of old Korea

  • 19

    Stock-leveraged investments rise again amid bullish KOSPI

  • 2

    Japanese teen romance film attracts 1 mil. Korean viewers for 1st time in 21 yrs

  • 4

    Korea to lift indoor mask mandate Monday

  • 6

    Kim Jung-hyun returns to small screen with 'Kokdu: Season of Deity'

  • 8

    Korean Lunar New Year vs. Chinese Lunar New Year

  • 10

    Over 76% of South Koreans support development of nuclear weapons

  • 12

    'Someday or One Day' cast says film spin-off has new plot

  • 14

    Koreans reluctant to unmask on first day of eased indoor mask rule

  • 16

    Seoul International School celebrates 50th anniversary

  • 18

    Base taxi fare to rise by 1,000 won to 4,800 won next month

  • 20

    Main opposition leader faces pressure to resign in case of indictment

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Tue, January 31, 2023 | 21:41
Economy
Won's depreciation to slow on China's measures
Posted : 2018-08-07 13:00
Updated : 2018-08-08 10:38
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Investors unlikely to unload Korean shares

By Park Hyong-ki

Amid tit-for-tat trade disputes between the United States and China, there are growing concerns the feud will destabilize the Chinese yuan leading to wild fluctuations of the Korean won.

Analysts expect the won's depreciation against the U.S. dollar to slow down in the coming week, following China's monetary measures to stabilize its currency.

"China's measures to cushion the yuan are likely to slow not only its depreciation but also prop up the won slightly against the U.S. dollar," said An Young-jin, an analyst at SK Securities.

Last Friday, the People's Bank of China (PBOC) imposed a rule on local banks to maintain their reserves equivalent to 20 percent of their clients' trading of foreign exchange forward yuan positions. The reserve ratio had been at zero.

This comes as the Chinese yuan had reached a record of nearly 7 per dollar as of last week, losing its value of more than 8 percent since April, amid concerns over the trade dispute between the United States and China.

However, the won still remains vulnerable as China could change its tactics to keep its currency undervalued, even though it has indicated it will not use the yuan as "a weapon" in its fight with the U.S. over trade.

China said it would use its fiscal policy to overcome the side effects from the ongoing trade row.

This could happen in the face of the U.S. hard-line position to impose higher tariffs on imported Chinese goods, analysts say.

Along with China's currency stabilization measures, it also announced last Friday it is considering imposing tariffs of up to 25 percent on U.S. imports worth $60 billion a year.

"The market still has to consider China could use the yuan to retaliate against the U.S. in this trade dispute," said Lim Dong-min, an analyst at Kyobo Securities.

The scenario could include the world's second-largest economy lowering the value of the yuan to keep export prices low, as the U.S. upped the ante with tariffs.

However, Lim said this will not be easy because a weaker yuan could ignite a capital flight.

The Korean won has been facing growing volatility during the escalating U.S.-China tariff retaliations, losing over 6 percent since January this year.

The U.S.-China conflict has led investors to unload the yuan to get hold of dollars, compounded with growing concerns over the viability of the Chinese economy.

The value of the dollar has been gaining on the back of strong data for employment and growth, as well as rising interest rates.

The key focus of China's currency measures is really aimed at "stabilizing its economy" as the world's second-largest economy seeks restructuring and to wind down its corporate sector debt, An explained.

The PBOC implemented the reserve requirement rule in 2015 when it tried to cool down the yuan's rapid depreciation and curb currency short-selling via offshore markets.

"Foreign investors are unlikely to unload their Korean shares en masse and rapidly weaken the won, reflecting global investors' risk-averse position even with the U.S.-China tension," said Kim Hyun-jin, an analyst at NH Futures.

He forecast the won-dollar to trade at around 1,120 for a while.


Emailhyongki@ktimes.com Article ListMore articles by this reporter
 
Top 10 Stories
1Korean Lunar New Year vs. Chinese Lunar New Year Korean Lunar New Year vs. Chinese Lunar New Year
2Over 76% of South Koreans support development of nuclear weapons Over 76% of South Koreans support development of nuclear weapons
3Koreans reluctant to unmask on first day of eased indoor mask rule Koreans reluctant to unmask on first day of eased indoor mask rule
4Stock-leveraged investments rise again amid bullish KOSPI Stock-leveraged investments rise again amid bullish KOSPI
5[ANALYSIS] Pandemic awakens demand for data-driven automation ANALYSISPandemic awakens demand for data-driven automation
6Busan seeks to take lead in expo race after BIE's April visit Busan seeks to take lead in expo race after BIE's April visit
7SPC opens 120th Paris Baguette store in US SPC opens 120th Paris Baguette store in US
8Retailers seek to bolster beauty product sales as lifting of mask mandate approaches Retailers seek to bolster beauty product sales as lifting of mask mandate approaches
9Biohealth geared for growth Biohealth geared for growth
10NK slams NATO chief's Seoul visit as 'prelude to war' NK slams NATO chief's Seoul visit as 'prelude to war'
Top 5 Entertainment News
1Song Joong-ki marries British woman, expects baby Song Joong-ki marries British woman, expects baby
2Kim Jung-hyun returns to small screen with 'Kokdu: Season of Deity' Kim Jung-hyun returns to small screen with 'Kokdu: Season of Deity'
3K-pop releases for February K-pop releases for February
4'Someday or One Day' cast says film spin-off has new plot 'Someday or One Day' cast says film spin-off has new plot
5Itaewon music fest brings love to the healing process Itaewon music fest brings love to the healing process
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group