FX.co ★ South Korean Won Firms As Authorities Pledge Action

The South Korean won strengthened to around 1,550 per dollar, edging up after briefly touching its weakest level since March 2009 near 1,560, as authorities stepped in to curb speculative FX activity and dampen market volatility. Senior officials from the Finance Ministry, the Bank of Korea, the Financial Services Commission, and the Financial Supervisory Service pledged to closely monitor trading and scrutinize suspected destabilizing transactions. Still, the won’s recovery was capped by broad dollar strength, after unexpectedly robust US labor market data led investors to scale back expectations for Federal Reserve rate cuts. Persistent foreign selling of Korean equities further bolstered demand for dollars. Additional pressure stemmed from renewed tensions in the Middle East, following reports that Iran fired missiles at Israel, which lifted safe-haven demand for the greenback and heightened concerns over higher energy costs for South Korea.