The South Korean won was stable against the dollar after inching higher as the currency began its first day of 24-hour trading, marking a milestone in Seoul’s push to open its financial markets to global investors.
The won eased 0.1 per cent to 1,531.40 against the US dollar, after rising as much as 0.2 per cent when it started trading at 6am. Other major currency pairs were little changed.
The launch of 24-hour trading is the centrepiece of a years-long effort to improve foreign access to local markets and bolster the case for an upgrade to MSCI’s developed-market index, where accessibility has long been a stumbling block.
It also reflects how the economy has evolved to one investing more overseas, making it harder to justify limiting trading to South Korean business hours.
This is the starting point for the won’s global leap
“This is the starting point for the won’s global leap,” said Finance Minister Koo Yun-cheol during a visit to a local bank’s trading floor on Monday. The move is a core infrastructure designed to provide the level of accessibility and convenience in FX trading comparable to advanced markets, according to Koo.