FX.co ★ South Korean Won Held Steady

The Korean won remained stable at approximately 1,390 per dollar on Friday, hovering near its lowest point since May due to cautious investor sentiment amid a sluggish recovery in domestic demand. Retail sales in May were weak across most sectors, with stagnant construction investment and a decline in industrial production, particularly in the vital mining and manufacturing sectors. Despite overall resilience in the labor market, notable job losses persist in key areas. Externally, the won is further pressured by deteriorating trade conditions, U.S. tariffs, and global economic uncertainty. Nonetheless, the government has noted an improvement in consumer sentiment and is hopeful that forthcoming consumption coupons will stimulate spending. Investors are now focused on the EMEAP meeting in Bangkok, where Bank of Korea Governor Rhee Chang-yong will engage with regional counterparts to discuss issues relating to inflation and financial stability. His comments may provide insights into the central bank's policy direction, with market participants looking for indications of potential further easing.