The South Korean won appreciated past 1,460 per dollar on Friday, rebounding from multi-month lows as policymakers moved to reassure markets and address volatility in the foreign exchange market. Investor sentiment was lifted after senior economic officials convened an emergency policy meeting, signaling a readiness to deploy a wide range of tools and to work with large market participants such as the National Pension Service and major exporters to correct structural imbalances in US dollar demand and supply. The coordinated communication, the most explicit since the authorities last issued verbal guidance in October, alleviated concerns regarding further depreciation and encouraged market participants to reduce dollar positions, enabling the won to recover part of its recent losses.
