CoinTelegraph
South Korea's won began trading around the clock for the first time on Monday, with the currency edging 0.2% higher to 1,527.80 per dollar in early trade, per Bloomberg. The move makes the won the first Asian currency to clear a fully continuous trading window, a structural change after decades of sessions confined to standard banking hours.
Why it matters
The shift lets Korean exporters, importers, and global investors hedge won exposure across all time zones, narrowing the gap with deep, around-the-clock FX pairs such as the dollar-yen or dollar-euro. The Korea Exchange launched the extended session after a multi-year roadmap that began with extended-hours testing in 2023. Continuous trading is expected to reduce the intraday volatility that historically built up around the won's opening, while giving overseas funds a more direct route into Korean assets without routing through offshore won markets.
Market impact
Early trade was orderly, with the won fractionally firmer against the dollar as offshore buyers absorbed the first hours of liquidity. The Bank of Korea and financial authorities have signalled that the 24-hour regime will be paired with stricter monitoring of cross-border flows and unusual price action, an acknowledgment that continuous trading expands the surface area for speculative pressure on a currency that has been on the weaker side of the dollar's range for most of the year.
Frequently asked questions
-
When did the South Korean won start trading 24 hours a day?
The won began around-the-clock FX trading on Monday, per Bloomberg, becoming the first Asian currency cleared for a fully continuous trading window.
-
What was the won's exchange rate when 24-hour trading began?
The won edged 0.2% higher to 1,527.80 per dollar in the early hours of the new regime, per Bloomberg.
-
Why is Korea moving the won to 24-hour trading?
Continuous trading lets exporters, importers, and overseas investors hedge won exposure across all time zones and gives global funds a more direct route into Korean assets rather than routing through offshore won markets.
-
Which exchange is operating the 24-hour won session?
The Korea Exchange rolled out the extended session after a multi-year roadmap that began with extended-hours testing in 2023.
-
What oversight is being added alongside 24-hour won trading?
The Bank of Korea and financial authorities have signalled closer monitoring of cross-border flows and unusual price action, given that a continuous window widens the surface area for speculative pressure on the currency.
TheBlock
WuBlockchain
WatcherGuru
CoinDesk