Korean Won Steadies After Hitting 4-Week Low

The South Korean Won touched 1353.00 against the USD, the lowest since October 2026. Over the past 4 weeks, US Dollar South Korean Won gained 1.1%, and in the last 12 months, it decreased 6.65%.

The South Korean won hovered around 1,358 per dollar, pausing its losses after hitting a four-week low, as a broadly stable US dollar and declining Treasury yields offered some relief. The greenback held near recent levels against major peers as investors sought safe-haven assets following a sharp sell-off in US equities. However, persistent risk aversion amid the global AI-driven tech rout continued to weigh on the won, with South Korea particularly exposed given its heavy reliance on semiconductor exports and foreign investment in local equities. The KOSPI plunged more than 5% below the 5,000 mark, led by steep losses in major chipmakers, triggering a 20-minute trading halt shortly after the opening bell. Meanwhile, continued foreign selling of domestic equities added to pressure on the currency.

The South Korean won rose to around 1,337 per dollar, extending gains for a second consecutive session as a sharp decline in the US dollar following early US midterm election results boosted demand for the local currency. The greenback weakened against major currencies as early results showed stronger-than-expected gains by Democrats, prompting investors to reassess the potential for a shift in congressional control and its implications for US government spending. Meanwhile, expectations of lower oil prices also provided some relief, with Brent crude easing to around $103.34 a barrel after falling nearly 1% in the previous session. Domestically, the Bank of Korea expects inflation to remain in the high 2% range in November, following a slowdown to 2.8% in October from 2.9% in September, as persistent core inflation and elevated service prices pose upside risks.