Korean won jumps to U.S. dollar on possible yuan rise

The South Korean currency jumped against the U.S. dollar Monday after China signaled that it will allow its currency to appreciate against the greenback, dealers said.

The local currency was trading at 1,179.35 won to the greenback as of 9:20 a.m., up 23.25 won from Friday's close. The Korean unit rose as high as 1,175.20 won to the dollar at one point.

The People's Bank of China, the country's central bank, signaled Saturday a flexible currency policy, raising expectations that China will allow its currency to appreciate against the greenback.

The won's rise also came after the chief of South Korea's central bank said a potential yuan appreciation is likely to put upward pressure on the Korean currency although the won's ascent may not be steep.//Yonhap

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