Seoul’s forex authority expects dollar-won misalignment to ease in late 2026 as exporter dollar inflows improve supply-demand dynamics.
South Korea’s foreign exchange authority stated the won remains misaligned with economic fundamentals, keeping the dollar-won market under pressure. Officials anticipate a shift in FX supply-demand dynamics in the second half of 2026, driven by exporters converting dollar holdings via FX forwards.
The assessment follows recent volatility in the won, which has struggled against the dollar despite broader emerging market currency stabilization. Authorities also noted extended trading hours for the dollar-won market provide additional tools to intervene if stability is threatened.
No immediate market reaction was specified, but the outlook suggests potential won support in the medium term.