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South Korean won holds gains as Bank of Korea tightening expectations rise

The won is set for a 6.5% monthly rally, even as the KOSPI drops more than 12% in a day after authorities halted trading for 20 minutes.

Reported · Written up by our desk · Major Pairs

The South Korean won (KRW) extended gains for a second straight day versus the US dollar and is on track for a 6.5% monthly rally, according to FXStreet.

The won’s strength is being supported by expectations that the Bank of Korea will continue monetary tightening, even as South Korea’s KOSPI faces a sharp selloff.

FXStreet noted that the KOSPI fell more than 12% on Wednesday after a 10% drop the prior day, with authorities halting trading for 20 minutes for the second consecutive session.

The outlet linked the currency resilience to stronger domestic data, including South Korea’s second-quarter GDP growth of 0.6% that beat expectations, while inflation rose to a 30-year high of 3.2% in June.

Latest closeKospi 6,755.75 ▲1.0%

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