South Korean Won Retreats as BOK Holds Rates

2026-01-15 03:31 By Erika Ordonez 1 min. read

The South Korean won weakened to around 1,471 per dollar, reversing gains from the previous session, as the Bank of Korea held its benchmark interest rate unchanged.

The decision highlighted the central bank’s focus on won weakness and exchange-rate volatility, signaling a potential end to the current easing cycle.

The stance helped curb sharper depreciation but failed to deliver a sustained rebound as broader FX pressures persisted amid global dollar strength and regional currency moves.

Authorities also stepped up FX stabilization measures, including tighter monitoring of cross-border flows and a crackdown on illegal foreign-exchange transactions, while officials noted that South Korea’s $350 billion planned US investment is unlikely to kick off in the first half, helping contain near-term dollar outflows.

The won got brief support from verbal backing by US Treasury Secretary Scott Bessent, who said the won’s recent decline was excessive and misaligned with fundamentals.



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