FX.co ★ South Korean Won Steadies

The South Korean won stabilized above 1,415 per dollar as investors analyzed the recent labor market data for its potential impact on monetary policy. April saw the nation's unemployment rate drop to 2.7% from March's 2.9%, matching February's figure. Despite the creation of nearly 200,000 new jobs, employment in the manufacturing sector—an economic cornerstone—experienced its sharpest annual decline in over six years. This trend is consistent with insights from the Bank of Korea's recent meeting minutes, where the majority of board members highlighted that economic challenges are escalating more rapidly than anticipated, signaling possible further cuts in interest rates. Concurrently, the won gained strength following the government's announcement of a 4.6 trillion won aid package for small and medium-sized enterprises potentially impacted by US tariffs. Additionally, a reduction in trade tensions between the US and China may temper expectations regarding the extent of future rate cuts, as previous escalations had heightened concerns about broader economic repercussions.