Overview
- The won slipped 0.26% to 1,443.2 per dollar on the first trading day of 2026 after officials restated their commitment to stabilize FX markets.
- Rhee said dollar-won levels in the upper 1,400s are significantly misaligned with economic fundamentals and the BOK will review its forward guidance on rates.
- Seoul is preparing new tax incentives to attract capital to local markets, and the National Pension Service has been selling dollars to support the currency.
- Experts point to a U.S. AI-driven capital pull, structural outflows from institutional investors, and yen weakness as key forces pressuring the won.
- Forecasts suggest only a slight recovery this year, with Citibank seeing dollar-won near 1,450 in three months and around 1,430 within six to 12 months.