South Korean Won Rises on Softer Dollar, Stronger Auto Exports

The South Korean won rose at around 1,380 per dollar on Wednesday, the highest level in about a month as the dollar retreated ahead of the Federal Reserve’s policy decision at the conclusion of its two-day meeting. While a 25-basis-point rate cut is fully priced in, investor attention has shifted to the Fed’s forward guidance and the pace of its easing cycle. On the domestic front, the won drew support from strong trade data as South Korea’s auto exports jumped 8.6% in August to $5.5 billion, a record for the month, driven by robust EV demand in Europe despite US tariffs. Export volumes rose 5.5% to 200,317 units, while cumulative shipments from January to August hit a record $47.7 billion.