The Korean won ticked up on Wednesday after Moon Jae-in was sworn in as president.
The won closed up by 0.3% at 1135.88 per US dollar.
Moon’s victory could lead to a shift in the Pacific Rim’s dynamics. The new president previously stated he supports dialogue with North Korea, as opposed to his predecessor’s cooperation with the US in enforcing sanctions on the Hermit Kingdom.
He “faces immediate foreign policy challenges in de-escalating tensions with the North,” analysts at BMI Research said in a note. “Moon’s conciliatory stance towards Pyongyang will reduce regional tensions, but could lead to greater disagreements with Washington, depending on how President Trump himself decides to handle North Korea.”
There’s also the possibility that a Moon presidency could lead to improved relations with China, which could prove to be a noteworthy development given the US’s withdrawal from the Trans Pacific Partnership.
As for the rest of the world, here’s the scoreboard as of 8:04 a.m. ET:
- The Brazilian real is up by 0.6% at 3.1690 per dollar after Brazil’s CPI rose by 4.08% year-over-year in April, slightly below expectations of 4.10%, and below the prior month’s reading of 4.57%.
- The Russian ruble is little changed at 57.8779 per dollar, while Brent crude oil, the international benchmark, is up by 0.9% at $US49.16 per barrel. Relatedly, the latest American Petroleum Institute data showed US oil inventories fell by 5.79 million barrels.
- The US dollar index is little changed at 99.53.
More from Elena Holodny:
- The election of South Korea’s Moon Jae-in could mean big changes for the Pacific Rim
- Job openings unexpectedly tick up
- The Korean won falls as South Korea heads to the polls
- The dollar hits its lowest level since the day after Trump’s election victory
- CHARLIE MUNGER: ‘A lot of other people are trying to be brilliant. We’re just trying to be rational.’