10.09.202502:37:09UTC+00South Korean Won Edges Up as Dollar Softens

On Wednesday, the South Korean won appreciated to approximately 1,388 against the dollar, rebounding from the previous session's losses. This recovery occurred as the US dollar remained under pressure following significant downward adjustments to US payroll figures. The weaker labor data strengthened forecasts for imminent interest rate reductions by the Federal Reserve, with many traders expecting a policy decision in the coming week. Domestically, however, the won's gains were constrained by continuous challenges in trade discussions with the United States. South Korean officials cautioned that Seoul's proposed $350 billion investment into the US might jeopardize long-term foreign exchange stability, committing to monitoring the situation and potentially implementing policy measures to protect the market. Concurrently, working-level talks in Washington concluded without resolution, highlighting the challenges in bridging gaps over investment regulations and currency-related issues. Market participants are also anticipating upcoming US inflation data, expected later this week, which could influence the Federal Reserve's policy direction and the broader trajectory of the US dollar.