FX.co ★ Won Steadies as Policy Support Eyed

The South Korean won stabilized at approximately 1,470 against the US dollar, attempting a rebound from recent multi-month lows. This follows the Finance Ministry's announcement of the formation of a dedicated task force under its international finance bureau. The task force aims to address the ongoing currency weakness by monitoring exporters' currency conversions, overseas investments, reviewing incentives for prompt dollar repatriation, adjusting tax exemptions on foreign dividends, and enhancing oversight of brokerage firms in response to concerns over leveraged offshore products. The necessity for such measures is underscored by the won's persistent dip below 1,450 per dollar, primarily driven by domestic outbound investments and foreign profit-taking. On a parallel note, investor sentiment remained cautious as markets anticipated the conclusion of the US Federal Reserve’s two-day policy meeting, with heightened speculation over a likely 25-basis-point rate cut by the central bank.