FX.co ★ South Korean Won Firms on Softer Dollar, FX Policy Relief

On Monday, the South Korean won appreciated to approximately 1,402 per dollar, recovering from a four-month low as Asian currencies gained strength against a depreciating US dollar. Meanwhile, investor attention pivoted to the looming risks of a US government shutdown, just prior to President Trump's scheduled meeting with congressional leaders ahead of the October 1 deadline. In terms of foreign exchange policy, market sentiment was bolstered by the presidential office's confirmation that the United States had decided not to label South Korea as a currency manipulator in its semiannual Treasury report. This decision alleviates a significant policy concern and suggests enhanced cooperation between the US and South Korea. This announcement followed statements from Finance Minister Koo Yun-cheol indicating that bilateral foreign exchange discussions with the US were concluded, sparking market speculation about potential advancements towards a currency swap line agreement with Washington.