World-Beating Currency Faces Triple Threat on Samsung, Pyongyang and Fed
- Best major currency this quarter is third-worst since Sept. 7
- Samsung’s Note 7 woes likely ‘negative for the won’: Shinhan
How a Fed Rate Hike Would Impact Global Economy
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The rally that made South Korea’s won the best performer of 31 major currencies this quarter is crumbling in the face of a triple threat.
The currency, which had gained 5.5 percent this quarter through Sept. 7, has since slid 2.5 percent over four days of declines. Concern global central banks are questioning the benefits of loose monetary policy prompted the worst outflows from the Seoul stock market in two weeks. Bets on currency and stock volatility jumped after Samsung Electronics Co. told users to turn off their Note 7 mobile phones due to fire risk and intelligence authorities said there is a high chance North Korea will conduct its third nuclear test of 2016.