South Korean Won Holds Firm
The South Korean won traded around 1,358 per dollar, holding onto gains from the previous session, as strong earnings prospects for Korean chipmakers continued to underpin the currency. Major Korean chipmakers are expected to report robust third-quarter results amid strong global demand for chips, keeping the outlook for export revenues and foreign-currency inflows favorable. At the same time, the finance ministry and Bank of Korea agreed to step up cooperation on financial market monitoring and response, while seeking a harmonious policy mix between economic and monetary policies. Meanwhile, higher US Treasury yields during the Chuseok holiday raised concerns over wider interest-rate differentials and further Fed hikes. Additionally, Brent crude rose above $105 a barrel amid uncertainty over the Strait of Hormuz, increasing Korea’s import costs and inflation concerns.
The South Korean won traded around 1,358 per dollar, holding onto gains from the previous session, as strong earnings prospects for Korean chipmakers continued to underpin the currency. Major Korean chipmakers are expected to report robust third-quarter results amid strong global demand for chips, keeping the outlook for export revenues and foreign-currency inflows favorable. At the same time, the finance ministry and Bank of Korea agreed to step up cooperation on financial market monitoring and response, while seeking a harmonious policy mix between economic and monetary policies.
Meanwhile, higher US Treasury yields during the Chuseok holiday raised concerns over wider interest-rate differentials and further Fed hikes. Additionally, Brent crude rose above $105 a barrel amid uncertainty over the Strait of Hormuz, increasing Korea’s import costs and inflation concerns.