The South Korean won weakened to around 1,360 per dollar on Wednesday, retreating from the previous session’s gains amid lingering uncertainty surrounding the stability of the ceasefire announced on June 24. Market attention was further drawn to reports indicating that Iran’s nuclear sites were unaffected, prompting ongoing speculation regarding the possibility of renewed tensions and the sustained effectiveness of the ceasefire.
Adding to the downward pressure, investors took note of Morgan Stanley Capital International’s (MSCI) annual classification review released Wednesday, which maintained South Korea’s emerging market status and was not designated for advancement in market classification. The global index firm underscored key areas for further development, such as improving the offshore convertibility of the Korean won and tackling persistent limitations within the onshore foreign exchange market, reflecting the country’s continuing efforts to enhance market accessibility.
