Korean Won Traders Brace for Volatility as Market Hours Lengthen
- ‘We are nervous,’ says Moon Junghiu at KB Kookmin Bank
- Authorities have vowed to counter any excessive price swings
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The South Korean won’s extended trading hours will give investors more flexibility about when to deal, but they also come with at least one potential downside: the threat of greater volatility.
The longer hours for trading, implemented Monday as part of the nation’s push to gets its stocks and bonds included in more global indexes, open up the prospect of far greater swings. That’s because the session will extend past midnight when fewer traders will be online to provide liquidity. While the currency traded in a tight band of 0.5% on the first day of extended hours, concerns remain around volatility.