South Korean Won Extends Losses

2026-01-12 03:07 By Erika Ordonez 1 min. read

The South Korean won weakened to around 1,475 per dollar, extending losses to a more than three-week low, as markets remained cautious ahead of the Bank of Korea’s policy decision.

With the central bank widely expected to hold rates steady this week, policymakers’ constraints from exchange-rate volatility and elevated housing prices leave little scope for near-term easing.

Authorities are preparing to issue FX stabilisation bonds as early as late January, with the issuance ceiling tripled to $5 billion this year, signaling readiness to bolster reserves and defend the currency amid persistent depreciation pressures.

Adding to the caution, authorities are monitoring rising US dollar deposits at domestic banks as households and firms step up hedging amid currency weakness.

Meanwhile, the dollar rose, as higher-for-longer US rate expectations continued to cap any meaningful recovery in the won.



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