FX.co ★ South Korean Won Steady Ahead of BOK Decision

The South Korean won remained stable at approximately 1,390 per dollar on Tuesday, as traders waited for the Bank of Korea's forthcoming policy decision scheduled for later in the week. Analysts mostly anticipate that the central bank will maintain its base interest rate at 2.50% on August 28. This expectation is supported by policymakers' cautious stance due to renewed concerns about increasing property prices, which has moderated predictions of any immediate rate reductions. Concurrently, a weaker dollar provided marginal support to the won, fueled by rising expectations of earlier U.S. interest rate cuts following the exit of Federal Reserve Governor Cook. Nonetheless, market sentiment continued to be fragile against a backdrop of ongoing geopolitical tensions and trade disputes. President Donald Trump has been adamant about sustaining tariffs on Korean imports, despite President Lee Jae Myung's efforts to advocate for their removal during discussions in Washington. On the home front, consumer confidence surged to its highest level in seven and a half years in August, buoyed by strong export performance and fiscal policy measures. However, officials have cautioned that this positive momentum might face obstacles due to U.S. trade policies.