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South Korean Won Nears Year’s Low as Authorities Ready FX Stabilization Push

Officials signal readiness to steady the market if volatility persists.

Overview

  • The won traded around 1,467–1,470 per dollar, a seven-month low and close to this year’s weakest level set in April.
  • Foreign investors’ heavy selling of Korean shares, a stronger U.S. dollar and a softer yen linked to expectations of Japanese stimulus are pressuring the currency.
  • Local investors have increased allocations to U.S. stocks, and exporters are holding dollars rather than selling, reinforcing downward pressure.
  • Finance Minister Koo Yun-cheol said policymakers will mobilize all available tools and will coordinate with major players such as the National Pension Service and large exporters to stabilize the exchange rate.
  • Bank of Korea Governor Rhee Chang-yong said the market looks excessively sensitive and indicated willingness to act, while companies report disrupted 2026 planning and uneven sector impacts that strain import‑reliant and smaller firms.