South Korean Won Advances to 2-Year High on Fed Chief's Outlook
The South Korean won has reached a near two-year high, driven by foreign investments and the Federal Reserve's recent outlook.
The South Korean won has reached a near two-year high, driven by foreign investments and the Federal Reserve's recent outlook.
On October 16, 2026, the South Korean won strengthened significantly against the U.S. dollar, reaching its highest level since October 2024. The exchange rate was reported at 1,331.4 won per dollar, marking an increase of 13.2 won from the previous trading session.
This surge in the won's value is attributed to comments made by Federal Reserve Chairman Kevin Warsh during an International Monetary Fund meeting in Bangkok. Warsh did not provide clear indications regarding the Fed's policy direction for the upcoming meeting, which has led traders to speculate that the Fed may maintain its key interest rate this month.
Additionally, the won's rise coincided with a shift in foreign investor behavior, as they turned net buyers of local stocks after an eight-day selling streak. In the latest trading session, foreign investors purchased a net total of 341.3 billion won (approximately $256 million) in local shares, contributing to a 2.05 percent rebound in the Korea Composite Stock Price Index, which closed at 5,668.05.
Analysts suggest that the combination of favorable foreign inflows and a stable outlook from the Fed has positively impacted the South Korean currency, reflecting growing confidence in the local economy.
Where it matters
Related coverage
S. Korea's Economy Maintains Solid Recovery on Exports
Seoul Stocks Rebound Over 2% on Eased Chip Concerns and Fed Optimism
South Korea, U.S. Hold First 2+2 Meeting of Finance Policymakers
CJ Group Joins JoongAng Ilbo Acquisition Race
CJ Group has entered the bidding process for JoongAng Ilbo, aiming to expand its media influence.