20.08.202502:18:55UTC+00South Korean Won Weakens on Dollar Gains

On Wednesday, the South Korean won fell to approximately 1,396 per dollar, continuing its decline for the second consecutive session as the dollar maintained its strength ahead of Federal Reserve Chair Jerome Powell's speech at Jackson Hole. Investors are keenly anticipating insights into the timing of potential US interest rate cuts. Domestically, economic sentiment was further dampened by data from the Bank of Korea, revealing that household credit surged to a record 1,952.8 trillion won by the end of June. This was the most significant quarterly increase since 2021, fueled by robust real estate demand driving mortgage lending, as well as an increase in credit card balances. On the geopolitical front, tensions remained high following Kim Yo-jong of North Korea's Workers’ Party dismissing President Lee Jae-myung's peace efforts and criticizing joint South Korea-US military exercises, highlighting ongoing security concerns.