FX.co ★ Won Strengthens on Government FX Measures

The South Korean won strengthened to approximately 1,464 per dollar on Wednesday, marking its second consecutive day of gains. This upward movement is attributed to improved market sentiment following the government's proactive steps to stabilize the foreign exchange market. Finance Minister Koo Yun-cheol emphasized the vigilance with which authorities are monitoring market activities, underscoring that they are prepared to implement measures if necessary to maintain orderly conditions. While no direct interventions have been announced, his assurances have indicated that all possible options to bolster the currency are under consideration, providing reassurance to investors and mitigating market fears. Furthermore, recent economic data from the United States has reinforced the expectation of a 25 basis point reduction in the Federal Reserve's interest rate at its December meeting. Statements from key Fed officials have bolstered confidence in the likelihood of a rate cut, pointing to weaknesses in the labor market as justification for monetary easing.