Won Holds Ground on Intervention Signals, Balanced Economic Data

The South Korean won held steady at around 1,402 per dollar on Thursday after two consecutive sessions of declines, as markets assessed mixed economic data alongside lingering concerns over FX intervention.

Central bank data showed South Korea’s authorities sold a net $800 million in the second quarter, marking a third straight quarter of dollar sales to curb won losses.

While highlighting depreciation pressures, the repeated interventions also signal a policy push to curb volatility.

On the macro front, consumer prices rose 2.1% in September, lifted by higher food costs, keeping inflation above the Bank of Korea’s 2% target and reinforcing expectations of cautious monetary policy.

At the same time, the current account surplus narrowed to $9.15 billion in August, the second monthly decline and well below June’s record $14.27 billion, as weaker trade flows pointed to softening external demand.