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Won strengthens versus dollar as intervention talk boosts KRW
USD/KRW fell 0.1% to 1,430, with Commerzbank citing FX intervention coordination with Japan and exporter dollar selling including large June forward sales.
Commerzbank economists, cited by FXStreet, said the South Korean won has kept gaining against the US dollar, with USD/KRW edging down 0.1% to 1,430 and extending declines from earlier in the week.
The firm linked the move to reports that South Korea’s Ministry of Economy and Finance intervened in the FX market last Thursday in coordination with Japan, alongside sustained exporter dollar selling.
Commerzbank also pointed to data context, noting July CPI eased to 2.8% year over year, while core CPI rose to 2.6%, as energy prices softened but underlying pressures broadened.
On the policy outlook, the economists expected the Bank of Korea to deliver one additional 25 basis point rate hike this year, taking the base rate to 3.0%, and said exporter hedging demand remained a factor, with domestic corporate net selling of USD 9.3 billion in forwards in June.