The Korean won has strengthened against theU.
dollar — as of Friday closing at the highest level against the greenback in morethan a year.
The exchange rate is now under 11-hundredwon to the dollar.
Our Kim Hye-sung explains why.
The Korean won strengthened past 1,100 againstthe U.
dollar for the first time in more than a year, closing at one-thousand-97-point-fiveFriday.
It has appreciated nearly nine percent againstthe greenback since the start of 2017, including a four percent rise in the last three months.
Thanks to easing geopolitical tensions and strong economic fundamentals.
(Korean)-"Solid exports growth led to a current account surplus, meaning more U.
dollars cominginto the country.
Second, the Bank of Korea is expected to raiseinterest rates soon, leading to a stronger won.
" In addition, a new currency swap deal signedbetween Korea and Canada on Wednesday also played a part in driving up demand for thelocal currency.
Korea's real GDP expanded one-point-four percenton-quarter in the third quarter, nearly double market expectations.
Most experts say that if the economy keepsgrowing at the current pace, the won will continue to appreciate.
But a stronger won means more pressure forKorea's exporters, as it raises the prices of goods sold abroad.
A Korean central bank official said Fridaythe won has appreciated quickly in a short time and that the foreign-exchange authorityis closely monitoring the markets.
Kim Hyesung, Arirang News.