28.10.202604:18:45UTC+00South Korean Won Retreats from Over 2-Year High

The South Korean won weakened to about 1,339 per dollar, pulling back from its more than two-year highs as renewed overnight dollar strength and caution ahead of the Federal Reserve’s interest rate decision outweighed support from semiconductor exporters’ dollar sales. The dollar index hovered near a two-week high of 102.37, with investors awaiting guidance on the future trajectory of US monetary policy amid persistent inflation concerns and tensions in the Middle East. The won also came under pressure from increased dollar demand by local retail investors purchasing US equities, while a rise in foreign currency deposits — which climbed to a record $154.7 billion in September — underscored residents’ continued accumulation of foreign currency assets. Even so, dollar-selling by exporters and foreign inflows into the local equity market continued to lend some support to the won.