South Korean Won Eases

The South Korean won traded around 1,344 per dollar, easing after approaching its strongest level since October 2024, as uncertainty over the Federal Reserve’s policy outlook and elevated oil prices weighed on the currency. The latest Fed meeting minutes highlighted concerns over persistent inflation, while Governor Christopher Waller signaled that further policy tightening may be needed to contain it. The prospect of higher US interest rates could keep the dollar supported and limit the won’s gains. Additionally, oil prices remained elevated amid renewed tensions involving Iran, with Brent crude settling at $104.28 a barrel and WTI at $91.49, raising concerns about imported inflation and higher energy costs for South Korea. Meanwhile, comments from President Donald Trump that the US would not attack Iran before the midterm elections helped ease immediate concerns over further escalation.

The South Korean won traded around 1,337 per dollar, reaching a four-week high and approaching its strongest level since October 2024, as strong external balances boosted the currency. South Korea posted a current-account surplus of $46.1 billion in August, the second-highest on record, with the goods account alone generating a $46.81 billion surplus. September export data continued to provide a favorable external backdrop, with shipments surging 83.5% year-on-year to a record $120.9 billion and the trade surplus reaching a record $49.85 billion. Thin holiday liquidity also amplified corporate dollar selling, helping the won hold up in the mid-to-high 1,330s. Meanwhile, the US 10-year Treasury yield remained around 5.3% after recently reaching its highest level since 2002, while the dollar index stayed near its strongest level since April 2025. The latest Fed minutes also showed that most officials favored another rate increase by year-end, limiting the won’s gains.

The South Korean Won touched 1336.00 against the USD, the highest since September 2026. Over the past 4 weeks, US Dollar South Korean Won lost 0.26%, and in the last 12 months, it decreased 6.07%.