The South Korean won rose on Wednesday against the U.S. dollar, achieving its top increase in about seven days as speculation mounted that the exporters are set to benefit from exchange rates, according to Bloomberg.
The won's advance comes after three trade sessions of slippage when the monetary unit fell 1.7 percent against the world's reserve currency. During the second half of 2013, the won climbed 8 percent against the dollar. Some analysts believed the Bank of Korea was preparing to intervene to stabilize the won's performance.
"Exporters' dollar supplies have emerged after the dollar-won rate looked unable to breach the 1,070 resistance, and the exchange rate is heading lower because of this," a currency dealer told The Business Recorder on Wednesday. "The won fell sharply in recent sessions, so some rollback should be expected."
The won increased about 0.4 percent against the U.S. dollar after having pushed to its lowest rate in about eight weeks on Tuesday.
An uptick in dollar selling in South Korea also helped the won cut into its losses from earlier this week, The Business Recorder reports.
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.
