Lead

The South Korean won strengthened to a more than two-month high against the U.S. dollar on Thursday, as the nation's economy reported better-than-expected growth in the second quarter, according to Yonhap News. The currency was quoted at 1,466.8 won per dollar at 3:30 p.m., up 13.3 won from the previous day. The won started the day at 1,478 won per dollar and rose to as high as 1,457.9 won, marking the strongest level since May 8.

The country's real gross domestic product rose 0.6 percent in the April-June period from three months earlier, according to the Bank of Korea, exceeding the central bank's May forecast of 0.2 percent growth. Yonhap attributed the better-than-expected performance to firmer exports of semiconductors.

Coverage Comparison

Yonhap News, South Korea's leading wire service, covered the story from two angles. One report focused on the won's strength, linking it directly to the economic growth data and to overseas investors' stock purchases. The other report highlighted a separate development: daily foreign exchange trading by banks in South Korea hit an all-time high in the second quarter, driven by foreigners' investment in the local equity market.

Both reports are based on data from the Bank of Korea, and together they paint a picture of increased foreign participation in South Korean financial markets. While the exchange rate report emphasized the currency's appreciation and the GDP growth beat, the FX trading report provided granular detail on the volume of trading activity during the same period.

Key Claims

  • The South Korean won strengthened to a more than two-month high against the U.S. dollar, closing at 1,466.8 won per dollar on Thursday, up 13.3 won from the previous session, as reported by Yonhap.
  • The country's real gross domestic product rose 0.6 percent in the April-June period from three months earlier, exceeding the Bank of Korea's May forecast of 0.2 percent growth, as reported by Yonhap.
  • The better-than-expected growth was attributed to firmer exports of semiconductors, a claim carried by Yonhap.
  • Overseas investors bought a net 2.1 trillion won (US$1.4 billion) worth of local stocks on Thursday, with the benchmark Korea Composite Stock Price Index jumping 4.4 percent to close at 7,096.89 points, as reported by Yonhap.
  • Daily foreign exchange trading by banks in South Korea hit an all-time high in the second quarter, with average daily FX turnover reaching $121.44 billion during the April-June period, up $18.79 billion, or 18.3 percent, from the previous quarter, according to Yonhap citing central bank data.
  • The increase in FX trading was driven by foreigners' investment in the local equity market, as reported by Yonhap.
  • Foreigners traded an average 1,048 trillion won (US$730.6 billion) worth of equities per month in April and May, up from 855 trillion won in the first quarter and 475 trillion won in the fourth quarter last year, as reported by Yonhap.
  • Average daily spot FX turnover climbed 27.7 percent on-quarter to $54.11 billion in the second quarter, while derivatives trading rose 11.7 percent to $67.32 billion, as reported by Yonhap.