South Korean Won Weakens Sharply Against US Dollar

On October 28, 2026, the South Korean won experienced a sharp decline against the US dollar, prompting worries among investors regarding import costs and overall economic stability.

At 3:30 PM, the won was trading at 1,337.7 won per dollar, down 14 won from the previous session. During the afternoon trading, it even dipped to 1,342.3 won per dollar.

This decline comes as foreign investors have been actively purchasing dollar futures and covering dollar-short positions. Despite expectations that the US Federal Reserve will maintain its key policy rate this week, traders are closely watching for any indications of a potential rate hike later this year.

In the latest stock trading session, foreign investors bought a net 815.8 billion won (approximately $609 million) worth of local shares, contributing to a 6.63 percent rise in the Korea Composite Stock Price Index, which closed at 6,012.44. This volatility in the currency market highlights the interconnectedness of global financial dynamics and the potential implications for South Korea's economy.