Why Korea currency does not drop as US dollar rise?

Discussions about trading the Forex markets.
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oem7110
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Why Korea currency does not drop as US dollar rise?

Post by oem7110 » Fri Feb 05, 2010 5:18 am

Does anyone have any suggestions on why Korea currency is not drop as US dollar rise? Does Korea currency have any relationship with Japan Yen? so Korea currency rise as Japan Yen rise?
Does anyone have any suggestions?
Thanks in advance for any suggestions
Eric

Kiwi
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Post by Kiwi » Fri Feb 05, 2010 5:58 pm

You don't trade a currency. You trade the ratio of a pair of currencies (KRW/USD say).

If its the KRW / USD then if the pair doesn't drop when U is strong then it means that KRW is equally strong.

Currencies generally have correlations with other currencies because of similar industries (resource = AUS / CAD) not "relationships." But correlations fall apart for either psychological, political or other reasons.

oem7110
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Post by oem7110 » Sat Feb 06, 2010 11:24 am

In case of crisis - stock market fall, US dollar / Gold will be a good choice to keep the money, but why does Korea currency keeps strong if US dollar is strong? Does anyone know the reason why Korea currency will be a place to go in case of crisis?
Thank everyone very much for suggestions
Eric

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