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

On Thursday, the South Korean won strengthened to approximately 1,465 per dollar, recovering losses from the prior session. This shift occurred as investors responded to the latest policy announcement by the Bank of Korea. The central bank opted to keep its benchmark interest rate steady at 2.5 percent, a decision viewed as supportive of currency stability amid the ongoing improvement in financial conditions. This decision, marking the fourth consecutive pause, bolstered confidence that policymakers are committed to maintaining stability while navigating the economy through its broader easing phase. Further enhancing the positive outlook, the Bank of Korea has revised its economic growth forecast for South Korea to 1 percent for 2025, indicating a recovery in domestic consumption and exports. This adjustment represents a 0.1 percentage point increase from the previous estimate of 0.9 percent made in August.