S.Korean currency jumps on upward revision of growth outlook

South Korean currency rose sharply to the U.S. dollar on Thursday as the central bank revised up its 2017 growth outlook for the economy.

The local currency finished at 1,129.7 won versus the dollar, up 11.7 won from the previous close. The won gained for the second consecutive session.

Bank of Korea (BOK) revised up this year's growth forecast for the South Korean economy to 2.6 percent from 2.5 percent estimated three months earlier.

The BOK froze its benchmark interest rate at an all-time low of 1.25 percent, keeping a wait-and-see stance since the bank cut the rate to the current level in June last year.

The benchmark KOSPI advanced 0.93 percent on the upgraded economic outlook and the eased concerns about geopolitical risks.

The South Korean currency had depreciated to the greenback from April 4 to April 11 on mounting geopolitical risks.

Expectations spread here that the Democratic People's Republic of Korea (DPRK) may conduct provocations ahead of the major anniversaries such as the April 15 celebration of the birth of DPRK founder Kim Il Sung, grandfather of top DPRK leader Kim Jong Un.

The USS Carl Vinson aircraft carrier and its accompanying battleships are heading toward the waters near the Korean Peninsula in a show of force against the DPRK. The Carl Vinson strike group had participated in the ongoing U.S.-South Korea joint annual military exercises last month.

The geopolitical risks eased as major South Korean presidential candidates announced strong oppositions to any military strike by U.S. forces against the DPRK.

A presidential by-election is scheduled for May 9 as former President Park Geun-hye was impeached on March 10 and arrested three weeks later over corruption allegations. Enditem