South Korean Won Gains on Policy Support and Pension Rebalancing
South Korea's Won has outperformed its peers as authorities step up stabilization measures, including new FX rules and tighter oversight of offshore derivatives and National Pension Fund hedging, according to Brown Brothers Harriman.
The South Korean Won (KRW) has outperformed regional peers after authorities intensified currency stabilization efforts, according to Elias Haddad of Brown Brothers Harriman (BBH).
Measures include new foreign exchange rules, stricter oversight of offshore derivatives, and tighter regulation of FX hedging by the National Pension Service. The moves come amid ongoing volatility and concerns over capital flows.
Equity rebalancing flows have also supported the Won, as portfolio adjustments favor the local currency in the near term.
Source: FXStreet Forex News