Won Holds Ground on Intervention Signals, Balanced Economic Data

Won Holds Ground on Intervention Signals, Balanced Economic Data

The South Korean won stabilized around 1,402 per dollar on Thursday, following two days of declines. This steadiness comes as markets weigh mixed economic data against ongoing concerns about foreign exchange intervention. According to data from the central bank, South Korea's authorities managed a net sale of $800 million in the second quarter, marking the third consecutive quarter of dollar sales aimed at cushioning the won from depreciation. These repeated interventions highlight existing depreciation pressures while also indicating a strategic move to mitigate market volatility. On the economic front, consumer prices in September increased by 2.1%, driven by rising food costs, thereby keeping inflation above the Bank of Korea's 2% target. This rise strengthens the expectation for a cautious approach to monetary policy. Additionally, the current account surplus contracted to $9.15 billion in August, marking the second consecutive monthly decline and significantly down from June's record $14.27 billion, as weaker trade dynamics suggest a decline in external demand.

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