South Korean Won Retreats from Over 2-Year High
The South Korean won fell to around 1,339 per dollar, retreating from over two-year highs as renewed overnight dollar strength and caution ahead of the Federal Reserve’s interest rate decision outweighed support from semiconductor exporters’ dollar sales. The dollar index hovered near a two-week high of 102.37 as investors awaited signals on the future path of US monetary policy amid persistent inflation concerns and Middle East tensions. The won also faced pressure from demand for dollars from local retail investors investing in US stocks, while rising foreign currency deposits, which reached a record $154.7 billion in September, highlighted continued accumulation of foreign currency holdings by residents. However, dollar sales by exporters and foreign inflows into local equities continued to provide some support for the currency.
The South Korean won fell to around 1,339 per dollar, retreating from over two-year highs as renewed overnight dollar strength and caution ahead of the Federal Reserve’s interest rate decision outweighed support from semiconductor exporters’ dollar sales. The dollar index hovered near a two-week high of 102.37 as investors awaited signals on the future path of US monetary policy amid persistent inflation concerns and Middle East tensions.
The won also faced pressure from demand for dollars from local retail investors investing in US stocks, while rising foreign currency deposits, which reached a record $154.7 billion in September, highlighted continued accumulation of foreign currency holdings by residents. However, dollar sales by exporters and foreign inflows into local equities continued to provide some support for the currency.