The South Korean won firmed to around 1,336 per dollar, rebounding from a two-week low as broad gains across Asian currencies and a weaker US dollar supported the move. The won outperformed most regional peers after the Federal Reserve left its policy rate unchanged at 3.75–4.00%. The smaller-than-expected number of officials favoring a rate hike led some investors to view the decision as mildly dovish.
At the same time, South Korea’s business sentiment improved. The Bank of Korea’s Composite Business Sentiment Index rose 5.1 points to 104.2 in October, its highest reading since August 2022. Stronger confidence in both manufacturing and services was underpinned by increased investment and production in semiconductors, automobiles, and shipbuilding, while the won’s appreciation helped lower import costs for local firms by reducing the price of foreign raw materials in won terms.
Even so, elevated energy costs remained a key risk for the import-dependent economy, with Brent crude trading near $115 per barrel.
