The South Korean won weakened to around 1,471 per dollar, reversing gains from the previous session, as the Bank of Korea held its benchmark interest rate unchanged. The decision underscored that concerns over a weak won and exchange-rate volatility are limiting room for further policy easing, even as growth remains uneven. The stance helped curb sharper depreciation but failed to deliver a sustained rebound as broader FX pressures persisted amid continued global dollar strength and regional currency movements. Additionally, the won saw temporary support from rare verbal backing by US Treasury Secretary Scott Bessent, who said the won’s recent decline was excessive and not in line with Korea’s fundamentals. Meanwhile, authorities stepped up FX stabilization measures, including tighter monitoring of cross-border flows and a crackdown on illegal foreign-exchange transactions, signaling official resolve to curb excessive volatility and reinforce market confidence.
