South Korean Won Retreats on Outflows

2025-12-26 01:17 By Mariene Camarillo 1 min. read

The South Korean won depreciated to around 1,440 per dollar, retreating modestly from a near 2-month high on persistent capital outflows and dollar supply-demand imbalances.

The currency rose sharply last week after authorities signaled a tougher stance against volatility, including measures to curb overseas stock investment by individuals.

Analysts caution that structural pressures from sustained foreign investment and dollar demand are likely to keep the currency around 1,400, after averaging a record-low 1,422 against the dollar in 2025.

Separately, investors weighed key economic data following the release of December consumer price index data.

On Wednesday, consumer prices rose 2.3% year-on-year in December, slightly down from 2.4% in November, signaling a modest easing in inflationary pressures.

However, the data are unlikely to shift the central bank’s policy stance in the near term, as officials remain cautious about reigniting financial risks.



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