Won Appreciates as IMF Says Currency Undervalued; Bonds Fall

South Korea’s won rose to its strongest level in two weeks after the International Monetary Fund said the currency was “undervalued” and raised its economic growth forecast for the nation.

The won gained for a second day as exchange data showed overseas funds bought more local stocks than they sold for the first time in three days. South Korea’s economic recovery is strong and the nation still has room to raise borrowing costs, Subir Lall, the IMF’s mission chief to the country, said yesterday. The MSCI Asia-Pacific Index of regional shares advanced after growth in U.S. manufacturing boosted confidence in the global recovery. South Korea’s 10-year bonds fell.