South Korean Won: Gains Against US Dollar Find Support in Hawkish BoK Hold – Societe Generale

The Korean Won (KRW) has climbed to a fresh two-year high near 1323/USD, supported by a hawkish policy decision and strong exports, according to Societe Generale. The Bank of Korea (BoK) voted unanimously to leave its policy rate at 3.0% and intends to keep policy restrictive until inflation converges to 2%. It also anticipates stronger economic growth in 2026 and 2027. Dollar selling by exporters is providing additional support to KRW.

How Are Policy and Exports Supporting the Won’s Rally?

"In Asia, the KRW strengthened to a fresh two-year high near 1323/USD after the BoK voted unanimously for a hawkish hold at 3.0%."

"The bank reiterated that it will maintain a restrictive policy stance until it is confident that inflation will converge to its 2% target."

"It believes that the economy will grow at a “considerably higher” pace than August projections of 3.3% for 2026 and 2.9% for 2027."

"The KRW is also supported by exporter-related dollar selling and another strong export performance."

"Early October exports more than double (+105.4% yoy). "

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)