FX.co ★ Won Rises on Steady Policy, Improved Economic Forecast

The South Korean won strengthened to approximately 1,465 per dollar on Thursday, marking its third consecutive session of gains. This movement comes as investors assimilate recent policy cues from the Bank of Korea. The central bank decided to keep its benchmark interest rate steady at 2.5 percent, a move perceived as supportive of maintaining currency stability amidst gradually improving financial conditions. This decision, the fourth time in a row, bolsters confidence that the policymakers are committed to fostering stability while navigating the economy through its broader easing phase. Additionally, the Bank of Korea enhanced the economic growth forecast for South Korea, projecting a 1 percent growth rate for 2025. This upward revision from the earlier 0.9 percent projection issued in August reflects a recovery in domestic consumption and exports, contributing to the optimistic outlook.