South Korean won climbs to near two-year peak as Fed chair offers no policy clues

The South Korean currency strengthened to 1,331.4 won per dollar on Friday, marking its best performance since early October 2024. The appreciation came after Federal Reserve Chair Kevin Warsh spoke at the International Monetary Fund gathering in Bangkok and provided no clear direction on the Fed’s forthcoming policy meeting, prompting market participants to anticipate a steady rate stance. This expectation boosted demand for the won.

In parallel, foreign investors reversed a week-long sell-off of Korean equities, netting purchases of 341.3 billion won (approximately US$256 million) during the session. The influx helped the Korea Composite Stock Price Index close up 2.05 percent at 5,668.05. The combined effect of muted Fed signals and renewed foreign buying drove the currency toward a near two-year high.