Why the Korean Won Rout Is Reshaping Currency Hedging

Episode 40 of Currency Conversations explores how the crash in the Korean won is forcing institutional investors to rethink currency hedging strategies. With the trade-weighted dollar at 120.1 and emerging market ETFs like EWZ and EWW down over 5% in a week, we drill into one specific case: the iShares MSCI South Korea ETF (EWY), which lost 13.5% in five days. Lucas and Luna break down how unhedged exposure amplified losses, why currency-hedged EM ETFs are seeing record inflows, and what this means for the dollar-yuan dynamic. If you've wondered why a strengthening dollar sometimes crushes your EM holdings even when local stocks are flat, this episode gives you the concrete mechanics. #KoreanWon #CurrencyHedging #EmergingMarkets #EWY #DollarStrength #TradeWeightedDollar #EMETFs #EEM #VWO #FXI #EWZ #INDA #CurrencyRisk #HedgingStrategies #FXMarkets #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo