- The KTB futures market initially fell thanks mostly to the steep rise of local stock market, but later this week, the KTB futures market rose mainly because the Bank of Korea lowered the target rate of economic growth for 2003.
- This week, the USD/KRW price at the KOFEX currency futures went down throughout the whole week.
The KTB futures market initially fell thanks mostly to the steep rise of local stock market helped by growing possibility that the war in Iraq may end much earlier-than-expected and the Bank of Korea's increased issuance of its monetary stabilization bonds on Tuesday.
However, later this week, the KTB futures market rose mainly because the Bank of Korea lowered the target rate of economic growth of Korea this year to 4.1% from 5.7% on Thursday.
In consequence, the leading month contract KTB 306 fell by 34 ticks from Monday through Wednesday, but later the KTB June contract increased by 50 ticks toward the weekend. The KTB 306 finished the week at 109.05, up 18 ticks from the previous week's end.
USD/KRW Futures Market
This week, the USD/KRW price at the KOFEX currency futures went down throughout the whole week. The leading month contract USD304 increased by 2.3% or KRW 29.3 to finished the week at KRW 1,229.5.
The major reasons behind the descent are as follows:
- Steep rise of local stock market
- Approval of the National Assembly on the dispatch of non-combat troops to Iraq
- Rising optimism that the war in Iraq will end soon
