South Korea has had massive outflows from domestic equities since the start of the year, particularly from foreign and retail entities looking to cash out. As such, South Korea is now looking to step up measures to combat further depreciation of the won against the dollar.
Apart from verbal interventions like boosting inspections into market misconduct and warning traders against speculation, they are directing active intervention by both banks and pension funds through selling dollar assets. Basically the polar opposite of what Taiwan is doing.
The unveiling of these measures themselves has boosted the won to around 1520, from a previous level of 1560 against the dollar, so a 2% strengthening.
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South Korea has had massive outflows from domestic equities since the start of the year, particularly from foreign and retail entities looking to cash out. As such, South Korea is now looking to step up measures to combat further depreciation of the won against the dollar.
Apart from verbal interventions like boosting inspections into market misconduct and warning traders against speculation, they are directing active intervention by both banks and pension funds through selling dollar assets. Basically the polar opposite of what Taiwan is doing.
The unveiling of these measures themselves has boosted the won to around 1520, from a previous level of 1560 against the dollar, so a 2% strengthening.