Korea's pension fund sells dollars as won hangs near 17-year lows

South Korea's state-run pension fund, the world’s third-largest, is conducting strategic foreign exchange hedging operations, supplying dollars in the market as the won wallows near 17-year lows, sources told Reuters on Tuesday.

- Reuters

The move, which effectively supports the local currency, is the latest example of recent hedging by the 1,458 trillion won ($973.04 billion) fund, which has historically bought dollars unhedged for its investments, adding to won weakness.

The NPS declined to confirm when or whether it conducts currency hedging operations.