Korean won's nominal effective rate rises to 2-year high

The Korean won's nominal effective exchange rate (NEER) has reached a two-year high, reaching 94.83 as of last Tuesday, according to data from the Bank for International Settlements (BIS). This marks the highest level since October 9, 2024, when the NEER was 94.91. The NEER, which measures a currency's value against major trading partners without adjusting for inflation, provides insight into the international price competitiveness of a nation's currency.

The won's NEER had previously fallen to 85.9 after the U.S.-Iran war broke out in late February and further to 81.99 in June due to foreign investors' stock sell-off. However, it has since rebounded as the won has strengthened against the U.S. dollar, with the won-dollar exchange rate averaging 1,358.8 won per dollar in September and 1,337.2 won over the first 23 days of October.

Brief written by urgent.news from The Korea Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.