South Korea’s National Pension Service (NPS) has suspended its foreign exchange hedging operations as the won strengthened to a near two-year high, a market source told Reuters on Monday.
The NPS, the world’s third-largest public pension fund and a major participant in South Korea’s financial markets, had been conducting currency hedging operations flexibly this year. The fund had also increased its hedging limit as policymakers sought to counter sustained weakness in the won.
