South Korea’s won headed for its steepest drop in almost a week as investors awaited policy decisions from the Bank of Japan and the Federal Reserve on Wednesday.
The currency was the biggest decliner among Asian counterparts as market-based odds showed there’s a 20 percent chance the Fed will raise interest rates on Sept. 21. Demand for Malaysia’s ringgit was limited as Brent crude remained below $50 per barrel.
“Investors are staying cautious ahead of the Fed and BOJ,” said Timothy Peng, a currency trader at INTL FCStone Ltd. in Singapore. “The ringgit remains under pressure due to weak oil prices.”
The won retreated 0.2 percent to 1,120.75 per dollar as of 9:47 a.m. in Seoul, according to prices from local banks compiled by Bloomberg. The ringgit was little changed at 4.1382 per dollar.
Ten-year South Korean government notes fell, pushing up the yield one basis point to 1.6 percent, the highest since June, prices from local banks compiled by Bloomberg show.
original source: http://www.bloomberg.com/news/articles/2016-09-20/south-korean-won-retreats-as-investors-cautious-before-fed-boj