FX.co ★ South Korean Won Rises on Fed Rate Cut Bets

The South Korean won strengthened to approximately 1,426 per dollar on Wednesday, recovering from losses in the previous session due to a weakening dollar influenced by increasing expectations of further monetary easing. Federal Reserve Chair Jerome Powell remarked on Tuesday that the projections for employment and inflation have largely remained stable since September, when the Fed enacted its first interest rate cut of the year. Domestically, the won was also bolstered by the International Monetary Fund's updated 2025 growth forecast for South Korea. On Tuesday, the IMF revised its growth estimate to 0.9 percent, up by 0.1 percentage point from July, citing that the impact of US tariff policies has been less significant than anticipated.