South Korean Won: Gains against US Dollar find support in hawkish BoK hold – Societe Generale

The Bank of Korea (BoK) unanimously held its policy rate at 3.0% and struck a hawkish tone, sending the Korean Won (KRW) to a fresh two-year high near 1323/USD, according to Societe Generale. A restrictive stance will remain in place until inflation converges to 2%, the bank plans, while it anticipates stronger economic growth in 2026 and 2027. Dollar sales by exporters and robust exports are providing additional support for KRW.

Policy stance and exports lift Won

"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.)