Korea's Won Drops to Asia Worst as Rate-Cut Bets Spur Bond Rally
- Geopolitical tensions from North Korea weigh on sentiment
- Samsung Futures predicts won will weaken to 1,250 in March
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South Korea’s won posted the biggest monthly decline since July as odds for another interest-rate cut build, just as the outlook for higher U.S. borrowing costs boosts the dollar.
The currency fell to a five-year low versus the greenback on Monday and is Asia’s worst performer this month as North Korea’s rocket launch on Feb. 7 weighed further on sentiment. The won weakened even as an index of South Korean local-currency bonds climbed in February by the most since September, driving the three-year yield to four basis points below the central bank’s benchmark rate. One of the seven policy board members voted for a cut at this month’s meeting.