Korean Won topples amidst regional tension

Aug 9 (Reuters) – Most Asian currencies stumbled on Wednesday with the Korean won destined for its biggest fall in nearly eight weeks as North Korea warned it is “carefully examining” plans for a missile strike on the U.S. Pacific territory of Guam.

The won was trading down 0.6 percent at 1134.8 at 0556 gmt. KRW=

North Korea’s reference to an attack on Guam followed

after President Donald Trump said the U.S. would respond to threats from North Korea with “fire and fury”.

“We have been down this road before, until the fireworks happen it will remain in the headlines, but in the past the markets have faded these types of moves. I think we have to be really sensitive to both liquidity conditions and further headline risk over the next 24 hours,” said Stephen Innes, Head of Trading APAC  at OANDA.

“China basically buttresses the North Korea economy from top to bottom. We are going to have international pressures from the U.S. and all the developed-world leaders who see this escalating a bit too far. I think there is going to be pressure on China to make some serious economic sanctions towards North Korea until they give up the plot of military escalation.”

The Edge Markets via Reuters

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Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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