Seoul FX Market Launches 24-Hour Trading Amid Volatility Concerns

Seoul's foreign exchange market is transitioning to a 24-hour trading system from the 6th. The expansion of trading hours has sparked dual expectations: potential for increased foreign capital inflow and exchange rate stability, alongside concerns that thin liquidity could amplify won volatility in response to minor variables. Daily won fluctuations recently reached 14.54 won, the largest swing since the financial crisis, intensifying market vigilance as the extended trading regime begins.

Market Participants Express Dual Expectations on Trading Hours Expansion

The shift to 24-hour won-dollar trading has generated mixed market sentiment. Expectations exist that expanded trading hours could facilitate foreign capital inflow and contribute to exchange rate stability. Simultaneously, concerns have emerged that initial thin liquidity conditions may cause the won to fluctuate significantly in response to minor market variables during the transition period.

Won Volatility Hits 14.54 Won Daily Range Since Financial Crisis

Daily won fluctuations reached 14.54 won, marking the largest intraday range since the financial crisis. This historical volatility level has heightened market attention as the 24-hour trading system begins operation. The won-dollar trading hours are expanding from the 6th.

FAQ

When does Seoul's 24-hour foreign exchange trading begin?
Seoul's foreign exchange market transitions to 24-hour trading from the 6th.

What is the recent daily volatility range for the Korean won?
Daily won fluctuations reached 14.54 won, the largest intraday range recorded since the financial crisis.