SK Won Holds Flat on Varied Market Drivers

The South Korean won held steady at around 1,384 per dollar on Tuesday, as investors weighed key economic data following the release of July consumer price index data and subdued movements in the greenback. Inflation eased marginally to 2.1% year-on-year from 2.2% in the previous month. The moderation in price pressures reinforced expectations that the Bank of Korea may resume its easing rate-cutting cycle in the coming months. Concurrently, the foreign exchange reserves rose for the second straight month in July, up $1.13 billion to $411.33 billion, driven by higher investment returns and the issuance of foreign currency stabilization bonds. Additionally, the won index also mirrored Wall Street’s overnight gains, buoyed by rising expectations of US rate cuts after weaker labor market data.