27.04.202603:33:16UTC+00South Korean Won Gains

The South Korean won firmed toward 1,470 per dollar, rebounding from a recent two-week low as the US currency softened and risk sentiment stabilized after a bout of volatility. The pullback in the dollar offered short-term relief to Asian currencies, including the won, which had come under pressure from recent safe-haven inflows into the greenback.

Improved risk appetite across regional markets also supported the currency, with South Korea’s KOSPI pushing to new record highs. That strength in equities helped temper near-term demand for the dollar and contributed to a modest recovery in the won.

On the macroeconomic front, stronger-than-expected domestic growth provided an additional anchor for the currency, as it tempered expectations for imminent rate cuts by the Bank of Korea and lent further stability to the won’s outlook.

However, the upside for the won remains constrained. Persistently elevated energy prices continue to cloud Korea’s external position, with Brent crude trading above $107 per barrel and ongoing disruption risks in the Strait of Hormuz keeping import costs elevated. These factors are reinforcing inflationary pressures, particularly through oil and LNG channels, and limiting the scope for more pronounced gains in the currency.