South Korean Won Holds Ground on Strong Data

The South Korean won held around 1,386 per dollar on Friday after rising for two straight sessions, as markets weighed economic data and the Bank of Korea’s steady policy stance. July reports showed a rare simultaneous gain in all three key indicators in South Korea: industrial output, retail sales, and facility investment, marking the first “triple increase” since February. This pointed to firmer domestic momentum despite external headwinds, providing a counterweight to concerns over US tariffs and slowing exports, while also underscoring the tangible impact of government stimulus on consumption and investment. Markets also continued to digest the Bank of Korea’s decision a day earlier to keep its base rate unchanged at 2.50%, alongside a cautious growth upgrade to 0.9% for 2025 and warnings over household debt and property risks. Externally, the dollar steadied ahead of the US PCE inflation release, with traders awaiting confirmation of potential Fed rate cuts in September.