South Korean Won Steady Ahead of BOK Decision

The South Korean won held steady around 1,390 per dollar on Tuesday, with little movement as traders awaited the Bank of Korea’s policy decision later this week. Markets widely expect the central bank to keep its base rate unchanged at 2.50% on August 28, with policymakers signaling caution amid renewed concerns over rising property prices, tempering expectations for near-term easing. At the same time, a softer dollar lent some relief to the won, as the removal of Fed Governor Cook boosted expectations of earlier US rate cuts. However, sentiment remained fragile amid persistent geopolitical tensions and trade frictions, with US President Donald Trump refusing to ease tariffs on Korean goods despite President Lee Jae Myung’s lobbying in Washington. Domestically, consumer confidence rose to a 7½-year high in August driven by robust exports and fiscal stimulus, though officials warned that momentum could be challenged by US trade measures.