South Korean Won Rises With Malaysian Ringgit as Oil Advances
South Korea’s won strengthened along with Malaysia’s ringgit as a rally in energy prices boosted demand for higher-yielding assets.
The won climbed for the first time in three days as a gauge of emerging-market shares headed for its longest stretch of gains in 16 months. Brent crude advanced to the highest in a month on Monday, brightening the outlook for Malaysia which derives a fifth of government revenue from oil-related sources.
“A recovery in risk appetite is sending emerging currencies stronger,” said Wu Mingze, a foreign-exchange trader in Singapore at INTL FCStone Inc., a Nasdaq-listed global payments-service provider. “Commodities are rallying, lifting stock prices and commoditycurrencies.”
The won strengthened 0.5 percent to 1,098.10 per dollar as of 9:45 a.m. in Seoul as trading resumed after Korea’s financial markets were shut on Monday for a holiday. The ringgit appreciated 0.2 percent to 3.9975 per dollar after gaining 0.5 percent on Monday.
South Korea’s 10-year bonds rose, with the yield dropping one basis point to 1.40 percent, according to prices from local banks compiled by Bloomberg.