South Korean Won Edges Higher on First Day of 24-Hour Trading

The South Korean won strengthened slightly against the U.S. dollar on its first day of 24-hour trading. According to Jin10, South Korea introduced round-the-clock trading as part of a years-long effort to improve overseas investors’ access to the local market and to support its bid for inclusion in MSCI’s developed market index. The report said the change also reflects a gradual shift in South Korea’s economy toward greater overseas investment, making it increasingly difficult to justify limiting won trading to domestic market hours. Last week, the won at one point slid toward its weakest level since 2009. Vice Minister of Finance Moon Ji-sung said last Friday that regulators would step up monitoring of overnight trading ahead of the formal rollout of 24-hour trading on Monday. The won has been among Asia’s weakest-performing currencies this year. The report said pressure on the currency has come from higher energy prices linked to the Iran war, as well as overseas investors selling local stocks after a sharp rise in South Korea’s equity market to rebalance portfolios.