South Korean Won Hurt by Volatility Curbs

The South Korean won fell on the concerns that the government is going to perform actions, which would curb the currency’s volatility and drive away the speculators.
South Korea’s government announced the cap on currency derivatives in June, demanding the foreign and domestic banks to cut their holdings to the specified amount of equity capital by October 2012. It looks like the government desires to prevent the speculative funds from coming into the country, which is weakening the currency.
USD/KRW went up from 1,107.90 to 1,113.00 as of 13:29 GMT today, following the advance to 1,115.40.

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