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South Korean won hits lowest level since February as USD/KRW slides

USD/KRW fell 0.7% to 1,444 on the day, helped by expectations for further Bank of Korea tightening and faster export earnings repatriation.

Reported · Written up by our desk · Major Pairs

The South Korean won strengthened against the US dollar, with USD/KRW dropping to its lowest level since February, Commerzbank Research notes via FXStreet.

Commerzbank attributed the move partly to tightening expectations for the Bank of Korea after Governor Shin Hyun-sung commented that tighter monetary policy may be needed to address mounting inflationary pressures.

FXStreet also cited support for the won from export earnings repatriation as the pair has fallen 7.3% since July 1.

The outlet tied the currency backdrop to South Korean policy scrutiny over leveraged exchange-traded funds, saying authorities have tightened rules on leveraged ETFs to curb KOSPI volatility and that lawmakers questioned the rapid rollout.

Latest closeKospi 5,663.24 ▼6.0%

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