The South Korean won (KRW) strengthened initially before giving back gains as broader risk aversion returned. The Bank of Korea kept its policy rate at 3% and maintained a tightening bias, while also describing the currency as undervalued; these factors were framed as supportive for KRW. The subsequent pullback, however, underscored the continued influence of global risk sentiment on price action.
Macroeconomic and Policy Drivers
Further recovery was presented as possible on the back of that tightening bias and South Korea’s export performance, but the backdrop remains fragile, with unsettled global technology sentiment and oil prices cited as key risks. A firmer rebound was linked to a slowdown in foreign equity selling.
Technical Analysis and Market Levels
Technically, daily momentum was described as lacking a clear direction as the decline in RSI moderated, pointing to two-way trading; support was placed at 1,320, with resistance at 1,335 and 1,343, the 21-day moving average (DMA).
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