South Korean Won Strengthens Amid Trade Gains and Rates

The South Korean won rose to around 1,466 won per dollar on Thursday, gaining momentum after two sessions of stability, supported by ongoing government efforts to ease concerns about capital outflows.

This support came after the Ministry of Trade, Industry and Energy announced a new framework for Modular Trade Agreements, refocusing attention on the foreign exchange market. The National Pension Service (NPS) is expected to intervene further if the exchange rate approaches the 1,480 – 1,500 won range.

Optimism was bolstered by increased confidence in additional measures to manage the foreign exchange market. The won also gained strength with a 17.3% year-on-year surge in exports during the first ten days of December, driven by strong global demand for semiconductors. The value of shipments reached $20.58 billion compared to $17.54 billion a year earlier.

Separately, the currency received a morale boost following the U.S. Federal Reserve's interest rate cut to 3.5–3.75%, narrowing the interest rate gap between the United States and South Korea to approximately 1.25 percentage points.