04.11.202505:50:30UTC+00South Korean Won Weakens to 7-Month Low

The South Korean won has weakened, reaching approximately 1,440 per dollar, marking its fourth consecutive day of declines and hitting its lowest point in nearly seven months. This drop occurs despite an unexpected rise in domestic inflation. Consumer prices in South Korea increased by 2.4% in October, the fastest rate in over a year and surpassing market predictions. This situation bolsters the expectation that the Bank of Korea might keep its policy rate unchanged for an extended period to manage inflation while addressing growth challenges. For most of 2025, inflation has remained above the Bank of Korea's 2% target, with minor decreases noted only in May and August, which adds pressure on policymakers to maintain a consistent policy in light of the ongoing currency weakness. There is still widespread concern regarding South Korea’s trade and investment prospects, particularly as markets evaluate the implications of the recent tariff agreement with the US and associated investment strategies. Additionally, the strong dollar continues to exert external pressure on the won.