South Korea Drills

Monday, December 20, 2010
The South Korean won was slightly higher against the U.S. dollar on Monday in volatile trading, recovered after a month low despite news about the expected performance of the South Korean military artillery test Yeonpyeong Iceland, such as.
The local currency fell to 1.7% before the anticipated drilling under increasing geopolitical tensions. The dollar reached at KRW1, 172.30 - its highest level since the mark KRW1, 175,00, 24 November in North Korea after the bombing of Yeonpyeong.
If North Korea's artillery in response to ammunition, South dollar could reach KRW1, 200, said a dealer at a local bank.
The tensions began in the CNN report, however, facilitate that North Korea has agreed to allow the return of UN inspectors in the nuclear area countries, with cattle to quickly enter their minimum principles.
The money was finally like North Korea from immediate armed response to penetrate the South has declined to even consider the market participants all the developments closely, said that Pyongyang, they would face such a retaliatory capacity of South Korea.
"North Korea can probably come up with something - if they want - a little later, as South Korea, our vigilance," said a dealer at a foreign bank in Seoul.
Forecasts the dollar trading in a range of KRW1, 130 to KRW1, 170 for the rest of the week, with other markets may be subject to fluctuations.
Standard & Poor's maintains the view that the risk of another military conflict on the Korean peninsula are modest, despite the current tensions, a business of rating analysts said on Monday.
National Treasury bill and bond futures ended slightly higher after past losses, as a recovery in the local currency has helped to lift sentiment in the market.
finally acquired 12th March ticks obligations after the loss of up to 11 intraday ticks. Bonds were mainly falling on geopolitical concerns.
"Bonds are having a greater sensitivity to issues related to country risk in overseas (financial) market will react," said a manager of a business relationship with local securities.
Market participants brushed the announcement on Sunday that South Korea is a tax on the balance sheets of banks by non-deposit impose debt - perhaps in the second half of next year - that the movement was well marked, as were other details not yet announced.

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