FX.co ★ South Korean Won Slips Amid Policy Uncertainty

The South Korean won weakened further to about 1,408 per dollar on Wednesday, marking its second consecutive session of losses. Concerns over restricted policy measures continued to dampen investor sentiment. On the same day, the United States and South Korea released a joint statement emphasizing that foreign exchange interventions should be confined to reducing excessive volatility rather than manipulating exchange rates for competitive gain. Notably, the statement did not mention a bilateral currency swap agreement that Seoul had been seeking to mitigate outflows and manage foreign exchange risks tied to its $350 billion US investment initiative. Market analysts warn that the absence of this swap line could impede Seoul's capacity to secure dollar liquidity and maintain its defense of the won if depreciation pressures continue.