South Korean Won Steady, Jackson Hole in Focus

The South Korean won held steady near 1,398 per dollar on Friday, extending its second session of muted trading as investors await Fed Chair Jerome Powell’s anticipated Jackson Hole speech, which could shape the outlook for US rate cuts, while also weighing mixed signals from the domestic economy. Markets are seeking clarity on the timing of potential policy easing after weak labor data and persistent inflation risks. Pressure came from Korea’s heavy energy import needs, with August data pointing to an eight-month high in Asian LNG shipments from the US, reinforcing dollar demand for fuel payments and raising worries over Korea’s trade balance heading into winter. Meanwhile, trade data offered some support, with exports rising 7.6% in the first 20 days of August on robust demand for semiconductors and automobiles, outpacing a modest 0.4% increase in imports and yielding a provisional surplus of $800 million.