27.08.202502:40:26UTC+00South Korean Won Halts Decline on Summit Optimism

The South Korean won stabilized at approximately 1,395 per dollar on Wednesday, ending a two-day decline as market sentiment improved. This shift followed a productive summit between President Lee Jae Myung and US President Donald Trump, alongside an upswing in domestic business confidence. The meeting in Washington was perceived as easing uncertainties surrounding trade and defense, with new cooperation agreements, such as potential US purchases of Korean-manufactured ships and shared energy ventures, enhancing prospects for exporters. Additionally, a survey conducted by the Bank of Korea indicated business confidence reached a nine-month peak in August, driven by reduced tariff concerns after last month's US-Korea trade agreement and robust demand for semiconductors and automobiles. On a global scale, the dollar remained stable amid concerns regarding the Federal Reserve's independence. Looking forward, traders are exercising caution ahead of the Bank of Korea's policy announcement on Thursday, as interest rates are expected to stay at 2.50%, with officials balancing inflation management against housing market considerations.