South Korean Won Firms on Risk-On Mood

The Korean won rose to around 1,392 per USD on Monday, recovering from recent losses as global sentiment improved. Asian equities advanced after the Fed’s rate cut, with traders watching for cues on further easing. At the same time, optimism also built ahead of China’s loan prime rate decision this week, with hopes that authorities will maintain credit conditions and back regional trade. Meanwhile, upside for the won was tempered after President Lee Jae Myung warned that Washington’s push for $350 billion in Korean investments without safeguards could trigger a 1997-style financial crisis unless paired with a currency swap. His remarks highlighted risks over capital outflows, FX reserve strains, and fragile trade ties with the US, clouding Korea’s external stability outlook. Looking ahead, markets are focused on Beijing’s policy stance, the upcoming US PCE inflation report, and comments from Fed Chair Jerome Powell and other officials for signals on the pace of easing.