29.08.202502:35:13UTC+00South Korean Won Holds Ground on Strong Data

On Friday, the South Korean won hovered around 1,386 against the US dollar, following two consecutive days of appreciation. Investors assessed recent economic data alongside the Bank of Korea's steadfast policy approach. In July, South Korea witnessed an uncommon simultaneous increase in its key economic indicators: industrial output, retail sales, and facility investment. This "triple increase," the first since February, signaled stronger domestic economic momentum despite international challenges. It highlighted the substantial effects of government initiatives on consumption and investment, moderating worries about US tariffs and declining exports. Meanwhile, the market continued to process the Bank of Korea's decision to maintain its base interest rate at 2.50%. Alongside this decision, the central bank issued a careful upward revision in growth projections to 0.9% for 2025 and expressed concerns over household debt and risks in the property sector. Internationally, the US dollar remained stable in anticipation of the US Personal Consumption Expenditures (PCE) inflation data, as traders awaited signs of potential Federal Reserve rate reductions this September.