South Korean Won: Authorities signal pause in KRW strength – ING
ING’s Chris Turner reports that USD/KRW rebounded from 1335 after news that Korea’s National Pension Service may halt or reverse its forward-market Dollar selling. Authorities appear comfortable with recent Won gains after a 15% USD/KRW drop since June.
South Korean authorities have indicated a potential pause in the strengthening of the Korean Won. ING reports that the USD/KRW currency pair rebounded from 1335 after news that Korea's National Pension Service may cease or reverse its forward-market Dollar selling. This development comes after a 15% drop in the USD/KRW exchange rate since June, which is comparable to a similar decline observed in 2022.
The reduction in USD selling pressure in these major FX pairs is seen as supporting the broader Dollar tone. ING prefers a period of consolidation in both USD/KRW and USD/JPY, as easing Dollar selling allows the US Dollar to find support more broadly.
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