The South Korean won paved the way for additional monetary units of Asia to lose value on Thursday as a consequence of the U.S. Federal Reserve publicizing its decision to taper monetary stimulus measures during the day prior, according to Bloomberg.
The MSCI Asia Pacific Index of shares notched a third-straight trading session of advances. The central bank of the U.S., the globe's largest economy, decided to reduce monthly stimulus measures from $85 billion to $75 billion. The highly-anticipated decision came after the body convened two days of meetings beginning on Tuesday.
"The fall may be limited as the decision eased also uncertainty and foreign funds are expected to come into emerging markets for higher returns," currency trader Han Sung Min with Busan Bank in Seoul told the news source on Thursday.
The won fell roughly 0.8 percent against the world's reserve currency on Thursday as the ringgit of Malaysia fell about 0.5 percent.
Speculation amongst traders and investors had been high earlier this week about the U.S. Federal Reserve reducing the amount of its monetary stimulus program, according to The Business Recorder.
Risk Disclosure
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.
