The South Korean won endured losses on Tuesday against the world's reserve currency on Tuesday as the country noted it is aiming to address volatility, according to Bloomberg.
Falling from near its six-year peak, the won reacted to Finance Ministry Director Kim Seong Wook telling Bloomberg that officials are probing volatility issues amid concern. Before dropping in value prior to markets closing on Tuesday, the won had notched its top rate since August 2008. Prior to losing value just before Tuesday's closing, the won pushed ahead, which the news source linked with data noting shippers selling an increased amounts of dollars. International investors acquired more local shares than they sold on Tuesday, marking the 19th consecutive day.
"Investors are expecting a less hawkish monetary policy meeting, as a strong won will hurt the economic recovery momentum," fixed-income trader Yoo Hyun Chul with Shinhan Investment Corp told the news outlet on Tuesday. "The consensus is that there will be no benchmark rate increase for some time."
The South Korean won edged down 0.1 percent against the U.S. dollar on Tuesday.
South Korean stocks were stronger performing than the positive dollar sentiment, according to The Wall Street Journal.
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