South Korean Won Hits 4-week High

The South Korean won strengthened to around 1,422 per dollar, marking a four-month high as investor confidence improved following the Bank of Korea’s latest policy decision. The central bank held its benchmark interest rate steady at 2.5% for the sixth consecutive meeting, citing stronger-than-expected economic growth and the need to maintain financial stability. Supporting the currency, the BOK also raised its growth forecast for 2026 to 2%, up from 1.8%, reflecting robust exports and a rebound in private consumption. Separately, the government also tightened oversight of the tariff-rate quota system to curb abuses, designating high-risk items for “intensive management” and requiring importers to prove timely domestic distribution. With about 100 items benefiting from over KRW 1 trillion in annual tariff reductions, the measures aim to bolster price stability and support investor confidence in South Korean assets.

The South Korean Won touched 1423.00 against the USD, the highest since January 2026. Over the past 4 weeks, US Dollar South Korean Won lost 1.24%, and in the last 12 months, it decreased 0.52%.

The South Korean won strengthened to around 1,437 per dollar, recovering from a brief dip in the previous session to a four-week high as government initiatives to attract foreign investment bolstered market sentiment. The currency’s rise coincided with a historic surge in the local stock market, which recently reached a market capitalization of $3.76 trillion. Lee Chan-jin, governor of the Financial Supervisory Service, told executives from 10 international institutions that authorities are implementing measures, including steps toward MSCI index inclusion, to further strengthen the domestic capital market. Investors are now turning their attention to the Bank of Korea’s policy meeting on February 26, 2026. Market consensus anticipates that the central bank will hold the base rate steady at 2.50%, as policymakers weigh current economic momentum against inflation and growth trends.