{"id":56576,"date":"2026-08-20T01:49:21","date_gmt":"2026-08-20T01:49:21","guid":{"rendered":"https:\/\/www.vtmarkets.com\/en-asia\/uncategorized\/usd-krw-dips-on-china-stimulus-disappointment\/"},"modified":"2026-08-20T01:49:21","modified_gmt":"2026-08-20T01:49:21","slug":"usd-krw-dips-on-china-stimulus-disappointment","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/usd-krw-dips-on-china-stimulus-disappointment\/","title":{"rendered":"USD\/KRW Dips on China Stimulus Disappointment"},"content":{"rendered":"\n

The USD\/KRW has dipped 0.1% to 1,371.15, continuing its recent downward trajectory as foreign investors reduce their exposure to South Korean equities.<\/p>\n\n\n\n

The decline suggests that traders are betting on a continued cautious stance from the Bank of Korea.<\/p>\n\n\n\n

With no immediate signs of intervention, the won is vulnerable to further downside pressure, especially if China\u2019s recovery falters.<\/p>\n\n\n\n

On the other hand, any concrete, more substantial stimulus from China could bolster the won and reverse the outflows.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Picture: USD\/KRW climbs to 1368.15, with bullish momentum slowing as traders watch for resistance near 1371.41 as seen on the VT Markets app.<\/a><\/em><\/p>\n\n\n\n

The USD\/KRW closed at 1368.15<\/strong>, reflecting a 0.44%<\/strong> increase during the session, with price action fluctuating between a low of 1362.2<\/strong> and a high of 1370.29<\/strong>.<\/p>\n\n\n\n

The moving averages (5, 10, and 30-period) indicate a short-term bullish trend, with prices trading above these averages for most of the session.<\/p>\n\n\n\n

However, the MACD<\/strong> shows bearish divergence as the MACD line dips below the signal line, with negative histogram bars expanding. This suggests that the pair may face a potential pullback in the near term.<\/p>\n\n\n\n

Dollar Strength Holds Firm<\/h2>\n\n\n\n

USD\/KRW’s movement has been largely influenced by global risk sentiment and dollar strength.<\/p>\n\n\n\n

Recently, the US dollar has benefited from strong US economic data and Federal Reserve signals hinting at a more cautious approach to rate cuts, supporting the dollar against risk-sensitive currencies like the Korean won.<\/p>\n\n\n\n

On the other hand, geopolitical tensions in Asia, particularly involving China, could also play a role in the won’s weakness.<\/p>\n\n\n\n

See also: Dollar Lifts, Asia Awaits China Housing Policy<\/a><\/strong><\/p>\n\n\n\n

Additionally, South Korea’s latest export data reflects challenges as global demand slows, further pressuring the won.<\/p>\n\n\n\n

China Stimulus on the Rocks<\/h2>\n\n\n\n

This shift in sentiment follows disappointment over China\u2019s stimulus measures, which have failed to lift market confidence.<\/p>\n\n\n\n

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What Really Happened With The Chinese Stimulus https:\/\/t.co\/TaD22tkg0c<\/a><\/p>— Bloomberg (@business) October 17, 2024<\/a><\/blockquote>