21.08.202502:55:48UTC+00South Korean Won Holds Flat Ahead of Jackson Hole

The South Korean won remained largely unchanged around 1,397 per dollar on Thursday, following recent declines amid prevailing dollar strength. This stability came as investors anticipated Fed Chair Powell's forthcoming address at Jackson Hole, hoping to gain insights into the trajectory of future policy easing. Although expectations for a rate cut in September remain high, they have somewhat diminished recently due to the Federal Reserve's focus on ongoing inflation worries rather than labor market weaknesses. Moreover, the committee faces internal disagreements fueled by tariff concerns. Concurrently, the dollar experienced increased demand, attributed to a tech-driven selloff on Wall Street, which boosted safe-haven flows towards the U.S. currency. On a domestic note, traders maintained a cautious stance, evident from significant outflows in equity-based funds over recent days. This reflects a broader risk aversion, as market participants await signals from global policy developments and regional events.