South Korean Won Strengthens on Export Gains and Hawkish Outlook

The South Korean Won gained ground against the US Dollar last week, supported by robust export performance and proactive policy measures. According to FX Street, the USD/KRW exchange rate fell both on Friday and over the course of the week, reflecting increased confidence in the Korean currency.

FX Street reports that while inflation remains elevated, it is easing, allowing the Bank of Korea to maintain a hawkish stance without raising rates in October. This balance of strong economic fundamentals and cautious monetary policy helped bolster the Won’s appeal among investors.

For Japanese market participants, the Won’s resilience highlights the importance of closely watching regional export dynamics and central bank policies, which can influence FX flows and equity sentiment across Asia.