Hawkish BoK hold underpins South Korean Won gains against US Dollar – Societe Generale

1323/USD marks a fresh two-year high for the Korean Won (KRW), according to Societe Generale. The advance follows the Bank of Korea’s (BoK) unanimous decision to hold its policy rate at 3.0%, accompanied by a hawkish message. Policy will remain restrictive until inflation converges to 2%. The bank also anticipates stronger economic growth in 2026 and 2027. Exporters’ Dollar sales and strong exports provide additional support for KRW.

1323/USD: Won Gains on Policy and Exports

"In Asia, the KRW strengthened to a fresh two-year high near 1323/USD after the BoK voted unanimously for a hawkish hold at 3.0%."

"The bank reiterated that it will maintain a restrictive policy stance until it is confident that inflation will converge to its 2% target."

"It believes that the economy will grow at a “considerably higher” pace than August projections of 3.3% for 2026 and 2.9% for 2027."

"The KRW is also supported by exporter-related dollar selling and another strong export performance."

"Early October exports more than double (+105.4% yoy). "

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)