Won sensitivity to equity sentiment peaks
LONDON & SINGAPORE - The South Korean won's sensitivity to global equity markets reached record levels this month, affected by the dynamic hedging activity of Korean asset managers, according to Deutsche Bank.
Analysts at the bank said the one-year rolling correlation between the won and the MSCI Asia index reached a historic high of 60% in mid-July, making it the most highly correlated to equities among the Asian currencies. The won also recorded the highest correlation to the Standard & Poor's
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