Won’s 24-hour trading debut passes with below-average volume
The US dollar-won pair’s spot trading volume was 6% under the average of the past 30 days
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[SEOUL] Trading in the South Korean won passed with below-average volume on its first day of round the clock dealing during a largely uneventful session, compared to the past 30 days.
The volume of the US dollar-won pair spot trading totalled about US$15.1 billion on Monday (Jul 6), according to data from Seoul Money Brokerage Services and Korea Money Brokerage.
This was 6 per cent lower than the average of the past 30 days.
Trading hours were extended from 17 hours, eliminating a gap the nation used to have with New York’s trading session.
Activity was concentrated within regular hours in Seoul, and volume thinned out as usual during London and New York hours. The currency, which is more than 2 per cent away from its weakest level since 2009, traded in a narrow range during the session.
For decades, South Korea has sought to leave behind its emerging-market status and be considered an advanced economy to lure more global investors.
The latest move is an unprecedented loosening of the nation’s grip on its currency, as it moves away from longstanding policy shaped by the trauma of the 1997 Asian financial crisis that nearly brought the economy to its knees.
Behind the scenes, the government was watching every tick.
At least two officials stayed inside the monitoring room in Sejong, about two hours from Seoul – known internally as “the box” – throughout the New York session, according to a government official who asked not to be identified discussing internal operations.
Many more remained awake outside, tracking the market until dawn, he said.
The priority is to ensure the market settles in smoothly, rather than to drive immediate activity, and officials are closely monitoring for any trading mishaps or system glitches, the official said. BLOOMBERG
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