FX.co ★ South Korean Won Extends Recovery

The South Korean won traded near 1,523 per dollar, extending its advance for a third consecutive session as authorities intensified efforts to stabilize the foreign exchange market. The Bank of Korea and the Financial Supervisory Service have begun joint inspections of major foreign-exchange banks for the first time in 14 years, following recent warnings about excessive volatility and speculative trading. Officials said the review will focus on whether market participants engaged in behavior that destabilized the FX market or attempted to secure improper gains by influencing exchange rates. The currency also continued to rebound after having fallen to its weakest level since 2009 last week, as traders unwound bearish positions in response to recent stabilization measures. However, further gains were capped by renewed tensions between the US and Iran, after Washington launched new strikes against Tehran, lifting demand for the US dollar and pushing oil prices higher.