Korean authorities' recent intervention has bolstered the outlook for the won, which had fallen 4% this quarter to near 2009 lows, leading to a recovery to 1,451 per dollar by day-end. This action, coupled with expectations of stronger economic growth and potential Federal Reserve easing, reinforces analyst projections from ING and Woori Bank for the currency to rebound to 1,400-1,420 per dollar by the first quarter of 2026.
Korean authorities' intervention on November 14 immediately bolstered the won, which recovered to 1,451 per dollar after having depreciated 4% this quarter to levels last observed in 2009. This decisive action signals official commitment to currency stability and has provided fresh support for the beleaguered currency. The intervention reinforces existing analyst expectations for a significant won rebound, with ING and Woori Bank projecting a target range of 1,400-1,420 per dollar by the first quarter of 2026. These optimistic forecasts are primarily driven by anticipated stronger Korean economic growth prospects and the potential for Federal Reserve easing. The confluence of direct official support, improving domestic fundamentals, and a potentially more favorable global monetary policy environment suggests a constructive outlook for the won. This shift in sentiment and fundamental drivers could attract renewed capital inflows into Korean assets, potentially reversing recent depreciation trends.
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strongly positive
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0.75
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