
The South Korean won traded around 1,539 per dollar, extending losses to its lowest level in over two weeks after MSCI kept South Korea in its emerging-market category. MSCI cited persistent foreign-exchange market accessibility issues, including limited offshore won convertibility and insufficient liquidity during extended trading hours, delaying South Korea’s progress toward developed-market status. Additionally, the US dollar remained relatively firm as investors continued to assess the outlook for US monetary policy. Meanwhile, the Bank of Korea reinforced its hawkish stance, signaling that higher interest rates may be needed at an appropriate time as rising housing prices, household debt, and leveraged investments threaten to fuel financial imbalances. Limiting further losses, oil prices eased as concerns over potential disruptions to energy supplies through the Strait of Hormuz softened, providing some relief for the energy-importing economy.

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