The South Korean won was leading the slump of Asian currencies this year against the world's reserve currency despite having achieved strong gains during the second half of 2013, according to Bloomberg.
The U.S. Federal Reserve's tapering of its monetary stimulus measures has pulled down the won. The monetary unit also is being pinched by underwhelming economic data about China, the host of the globe's second-largest economy.
"The won has been on the receiving end of negative emerging-market sentiment and we would like to see a return of portfolio inflows to indicate investors are comfortable to enter," states an email penned by strategist Patrick Bennett with Canadian Imperial Bank of Commerce in the middle of last week, according to Bloomberg.
Since December 31, 2013, the South Korean won has fallen 2 percent against the greenback after marking advances of 2.4 percent against the U.S. dollar during the final quarter of last year, Bloomberg reports.
U.S. Secretary of State John Kerry is set to make his fifth visit to Asia later this week, according to Reuters. He is slated to visit China, South Korea, Indonesia and the United Arab Emirates.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
© 2021 StoneX Group Inc. All Rights Reserved