SEOUL, Dec 26 (Bernama-Yonhap) -- The South Korean won rose to its highest level in nearly two months against the US dollar Friday, as the National Pension Service (NPS) resumed strategic currency hedging alongside authorities' efforts to stabilise the foreign exchange market, Yonhap News Agency reported.
The local currency was quoted at 1,440.3 won per dollar at 3:30 pm, up 9.5 won from the previous close, marking its strongest level since Nov. 4.
The rally came after the NPS restarted its strategic foreign exchange hedging programme, aimed at helping shore up the won, which had recently hovered near its weakest level in about 16 years.
Foreign exchange authorities also made a strong verbal intervention on Wednesday, calling the won's weakness "excessive" and pledging "strong" policy execution to stabilise the market.
Following the remarks, the won posted its biggest daily gain in more than three years on Wednesday, rising 33.8 won to close at 1,449.8 per dollar. Markets were closed on Thursday for the Christmas holiday.
"The won is unlikely to see another sharp decline in the short term, and the latest measures are expected to help stabilise sentiment that had been excessively skewed toward the won's weakness," Choi Ji-wook, an analyst at Korea Investment & Securities, said.
"For further improvement in market sentiment, it is important in the near term whether the rate closes below 1,450 won toward the year-end," he added.
-- BERNAMA-YONHAP
