“SKorean Markets Rattle on Martial Law Rumours; Asia Mixed”

The South Korean won faced a tough week, dropping 1.7%, its biggest weekly loss in over two years. This happened after rumours of a potential second martial law caused market panic. The won initially fell 1.1% against the US dollar but later recovered slightly, down just 0.4%. The won is now the worst-performing currency in Asia this year. The KOSPI index, South Korea’s main stock index, also took a hit, dropping for the third day in a row.

Meanwhile, the Indian rupee stayed flat after the Reserve Bank of India kept interest rates steady to control inflation. The rupee had reached a record low of 84.7575 earlier in the week due to a strong dollar and worries about the economy. Other Asian currencies mostly stayed stable, with Taiwan and Thailand seeing small gains of 0.2%.

The MSCI Emerging Market Currency Index lost 0.8% this week, affected by the continued strength of the US dollar. The dollar index rose 0.10% to 105.82 after a slight dip.

In the stock markets, most Asian countries saw mixed results. Stocks in Taiwan and Malaysia fell slightly, while Indonesia’s stock market rose by 0.4%. Other markets, including Singapore and the Philippines, also showed small losses.

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