FX.co ★ Korean Won Rises on Intervention Signals

The South Korean won strengthened to around 1,498 per dollar, extending its gains for a second session amid cautious optimism following verbal intervention by authorities aimed at curbing excessive market volatility. Government officials, led by Finance Minister Koo Yun-cheol, emphasized that policymakers stand ready to use all available tools, including round-the-clock monitoring of foreign exchange markets and intervention when necessary. Market sentiment was further supported by plans from the authorities and the Bank of Korea to conduct financial-sector stress tests and to prepare for an expansion of the 100 trillion won stabilization program. However, the won’s advance was partly limited as the US dollar firmed after the Federal Reserve left interest rates unchanged at 3.5–3.75 percent for a second consecutive meeting, while maintaining its forecast of only one rate cut this year.