Hedge Funds Bet on Korean Won to Mirror Taiwan Dollar Surge

Hedge funds are ramping up bets in the options market that the South Korean won will mirror the Taiwan dollar’s recent rally against the greenback.

Dollar-won option trading volume spiked to this year’s high last week, according to the Depository Trust & Clearing Corporation data, as speculation grew that Korea and the US discussed the won’s direction in their currency talks. Barclays Bank Plc said there’s been increased demand for put options from hedge funds.