Korean Won Slides to Two-Week Low

2026-02-05 03:20 By Mariene Camarillo 1 min. read

The South Korean won depreciated to around 1,470 per dollar, erasing earlier-week gains to hit a two-week low, as persistent domestic demand for US dollars continued to outweigh official stabilisation efforts.

The decline reflects structural capital outflows, with Korean retail investors increasingly favouring US equities.

Overseas holdings hit nearly $171 billion as of January 29, while a surge in US stock purchases has added further pressure.

The shift toward foreign assets has also pushed resident dollar deposits to a record $119.43 billion, limiting the impact of FX policy tools despite solid economic fundamentals and equity market gains.

Meanwhile, concerns were partly eased by upgraded economic forecasts.

A KCIF report showed eight major global investment banks raised South Korea’s 2026 growth outlook to 2.1%, up 0.1 percentage point from last month and above the Bank of Korea’s 1.8% and the government’s 2% estimates, citing a rebound in the global semiconductor industry.



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