South Korean Won Edges Up as Dollar Softens

The South Korean won rose to around 1,388 per dollar on Wednesday, recovering from losses in the previous session as the greenback stayed under pressure following sharp downward revisions to US payroll data. The weaker labor backdrop reinforced expectations for imminent Federal Reserve rate cuts, with traders widely anticipating a policy move next week. However, on the domestic front, gains were limited by ongoing friction in trade negotiations with Washington. Officials warned that Seoul’s planned $350 billion US investment package could pose long-term risks to foreign-exchange stability, pledging to safeguard markets through monitoring and potential policy measures. At the same time, working-level talks in Washington ended without progress, underscoring the difficulty of resolving differences over investment rules and currency concerns. Investors also looked ahead to key US inflation figures due later this week that could shape the Fed’s policy outlook and broader dollar trajectory.