South Korean won hits near 2-year high on Fed outlook, foreign inflows

• South Korean won reached a near two-year high against the U.S. dollar.
• Federal Reserve Chairman Kevin Warsh refrained from signaling policy direction.
• Foreign investors bought a net 341.3 billion won of local stocks.
• The benchmark Korea Composite Stock Price Index rose 2.05 percent.

The South Korean won strengthened to a near two-year high against the U.S. dollar on Friday, reaching 1,331.4 won per dollar at 3:30 p.m. This marked the strongest level since October 2, 2024. Federal Reserve Chairman Kevin Warsh's remarks at the International Monetary Fund meeting in Bangkok provided little indication of the Fed's policy direction for its upcoming meeting, leading traders to increase expectations that the key rate may remain unchanged. The won's appreciation was also supported by foreign investors ending an eight-day selling streak and purchasing a net 341.3 billion won (US$256 million) of local shares. The benchmark Korea Composite Stock Price Index rose 2.05 percent to close at 5,668.05.