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25 Apr 2013
Forex Flash: In Korea, it appears as if FX intervention is picking up - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts suspect that the BOK is working with a soft target at around the JPY/KRW 11.20 level.
They feel that authorities may also be forced to step up their efforts further given better GDP data overnight, simmering down of the North Korean tensions, and the refusal of the BOK to cut rates as expected in the last meeting. They write. “Q1 GDP rose 0.9% q/q versus expectations for an increase of only 0.7%. Importantly, exports were up 3.2%, showing that so far the weaker yen has not been much of a problem. Price of money adjusts faster than real trade flows.”
They feel that authorities may also be forced to step up their efforts further given better GDP data overnight, simmering down of the North Korean tensions, and the refusal of the BOK to cut rates as expected in the last meeting. They write. “Q1 GDP rose 0.9% q/q versus expectations for an increase of only 0.7%. Importantly, exports were up 3.2%, showing that so far the weaker yen has not been much of a problem. Price of money adjusts faster than real trade flows.”