FX.co ★ South Korean Won Rises from 7-Month Low

The South Korean won appreciated to approximately 1,471 per dollar, showing a modest rebound after reaching its lowest point in over seven months. This uptick occurred amidst indications that government interventions might be implemented to bolster the currency. The financial leaders of South Korea have hinted at potential strategies to stabilize the won, stating that they are considering intervention. They pointed out the ongoing strain from significant outbound investments by the National Pension Service and from exporters retaining their dollar earnings. These elements have been identified as crucial considerations in any forthcoming stabilization strategies. Moreover, early November export data proved robust, buoyed by strong semiconductor and automotive shipments, which contributed to maintaining a support level for the currency and limited further weakening. Concurrently, the continued appeal of U.S. assets, driven by Korean retail investors channeling capital into international stocks and secure gold products, has upheld a structural demand for dollars. This persistent dollar demand has been exerting pressure on the won for several months.