South Korea’s won stages dramatic rebound after months of decline
South Korea’s won made a sharp recovery this week after months of decline. On Wednesday, it recorded its largest daily gain in over three years, climbing 33.8 won against the dollar. The rebound followed coordinated efforts by authorities to stabilize the currency’s recent slump. The won had been trading near its weakest level in 16 years before the turnaround. Foreign exchange officials labelled the currency’s decline as 'excessive' and vowed 'strong' policy action to restore balance. Their intervention included the National Pension Service (NPS) restarting strategic currency hedging to support the won. By Friday, the currency reached its highest point in nearly two months. At 3:30 p.m., it traded at 1,440.3 won per dollar, marking a 9.5 won increase from the previous session. The midweek surge had already pushed it to 1,449.8 won per dollar, its strongest single-day jump since 2020. Market watchers noted that the measures helped ease extreme perplexity around the won. A closer look at the figures shows the currency’s path to stability may depend on holding below 1,450 won by year-end. The won’s rebound reflects both policy intervention and shifting market sentiment. Its recent gains suggest a temporary relief from earlier pressures. However, sustaining this momentum will likely hinge on further economic and regulatory developments.
