SEOUL (dpa-AFX) - The South Korean Won weakened against the U.S. dollar in the Asian session on Tuesday, after the Bank of Korea reduced its benchmark rate by a quarter-point as domestic political unrest and trade policies of the US government weighed on domestic demand and economic growth.
The monetary policy board, governed by Rhee Chang Yong, decided to lower the Base Rate by 25 basis points to 2.75 percent.
The decision matched expectations. This was the third reduction in the last four meetings.
The central bank said the domestic political situation, effects of the past rate cut on inflation, economic growth and financial stability will determine the timing and pace of any further rate cuts.
Against the U.S. dollar, the won fell to 1433.54 from an early high of 1428.13. At yesterday's close, the won was trading at 1429.65 against the greenback.
If the won extends its downtrend, it is likely to find support around the 1500.00 region.
Looking ahead, Canada manufacturing sales data for January, U.S. Redbook report, U.S. house price index for December, U.S. Consumer Board's consumer confidence for February and U.S. Richmond manufacturing index for February are slated for release.
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