The South Korean won lost value on Tuesday against the world's reserve currency after advancing five-straight trading sessions, according to Bloomberg.
Tuesday losses for the monetary unit totaled 0.2 percent after it climbed 2.6 percent during its five-day surge. Markets closed on Tuesday with the won at its top value since the middle of June.
"There hasn't been any big change in positions, and offshore flows are mixed," a currency dealer told The Business Recorder on Tuesday. "There could be some new dollar-short plays being established on bets for the dollar-won rate to revert back to high 1,120s, but there could also be some bargain-hunting interest around the mid-1,130s."
Losses for the won thus far this year against the U.S. dollar have pushed past 6 percent, which is largely linked with chairman Ben Bernanke publicly stating the U.S. Federal Reserve intends to taper economy-spurring monetary stimulus measures in the next few months. The Fed chief also said the central bank is aiming to close the stimulus program by the end of the year.
The U.S. also is preparing to release economic data later this week, according to The Business Recorder.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.