Search results for NDF
Finance
Won-dollar rate surges to 1,560, raising market jitters
South Korea\'s won-dollar exchange rate jumped to the 1,560 level, its highest since the financial crisis, stoking anxiety in currency markets. A surge cooled after authorities’ verbal intervention and the National Pension Service resumed currency hedging, but caution over U.S. monetary policy, Middle East uncertainty, foreign selling of local stocks and offshore NDF trading continue to weigh on the won. Analysts said the near-term ceiling may be limited, though volatility could persist.
Finance
South Korean authorities issue verbal warning after won-dollar rate breaks 1,550
South Korea\'s foreign exchange authorities issued a verbal intervention after the won-dollar exchange rate surged past 1,550 in onshore trading for the first time since the financial crisis. The Bank of Korea and the Ministry of Economy and Finance said they would not tolerate excessive volatility and one-way market moves relative to fundamentals and would respond strongly. They also said speculative trading such as offshore NDFs had increased volatility.
Finance
Won-dollar exchange rate eyes 1,500 as banks step up capital adequacy checks
The won-dollar exchange rate has been volatile around the 1,470 level as instability in the Middle East fuels risk-off sentiment and a stronger dollar. Some in the market cite the possibility of a rise into the 1,500s if conditions worsen. Banks are increasing monitoring because a sustained rise could lift risk-weighted assets and weigh on common equity tier 1 capital ratios. Short-term foreign currency liquidity is assessed as relatively stable.