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.



News Stream
South Korean Won Falls from Over-2-Month High
The South Korean won traded around 1,465 per dollar in late July, retreating from an over-two-month high as investors adopted a more cautious stance ahead of this week's Federal Reserve policy decision. The currency's pullback came as markets awaited further guidance on the US interest rate outlook, with uncertainty over the timing of future policy moves lending some strength to the dollar. At the same time, renewed risk aversion amid a sharp semiconductor selloff and foreign equity outflows further limited gains, with overseas investors selling KRW 2.1 trillion worth of shares. Meanwhile, the won remained underpinned by improved external conditions, as a pause in US-Iran strikes eased geopolitical concerns, pushed oil prices lower, and improved risk sentiment. Exporter dollar selling also helped sustain the currency, with SK hynix's record US listing earlier this month prompting dollar conversions that contributed to broader corporate repatriation flows.
2026-07-27
South Korean Won Advances to Over 2-Month High
The South Korean won strengthened to around 1,460 per dollar, reaching its highest level since early May, as stronger domestic growth prospects supported the currency. South Korea's economy expanded 0.6% in the second quarter, beating the Bank of Korea's 0.2% forecast, with robust exports, particularly semiconductors, and resilient private consumption helping offset lingering weakness in construction activity. The won was also supported by sustained foreign investor demand for Korean assets, with overseas investors returning to local equities as the KOSPI recovered, while improving sentiment toward the country's technology sector and export outlook supported capital inflows. Meanwhile, renewed Middle East tensions and a surge in oil prices posed downside risks, with escalating concerns over the US-Iran conflict and potential disruptions to energy supplies prompting caution in global markets.
2026-07-23
South Korean Won Hits 10-week High
The South Korean Won touched 1471.00 against the USD, the highest since May 2026. Over the past 4 weeks, US Dollar South Korean Won lost 4.61%, and in the last 12 months, it increased 7.17%.
2026-07-23