Societe Generale notes that the Korean Won (KRW) has risen to a fresh two-year high near 1323/USD after the Bank of Korea (BoK) unanimously kept its policy rate at 3.0% with a hawkish tone. The bank plans to maintain a restrictive stance until inflation converges to 2% and expects stronger economic growth in 2026 and 2027, while exporter Dollar selling and robust exports further support KRW.
Won rallies on policy and exports
"In Asia, the KRW strengthened to a fresh two-year high near 1323/USD after the BoK voted unanimously for a hawkish hold at 3.0%."
"The bank reiterated that it will maintain a restrictive policy stance until it is confident that inflation will converge to its 2% target."
"It believes that the economy will grow at a “considerably higher” pace than August projections of 3.3% for 2026 and 2.9% for 2027."
"The KRW is also supported by exporter-related dollar selling and another strong export performance."
"Early October exports more than double (+105.4% yoy). "
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