South Korea’s central bank hints at potential measures to stabilize the won amid currency volatility and investor outflows.
The Bank of Korea indicated it has capacity to intervene in currency markets as the won faces downward pressure. The statement follows record foreign investor outflows from Asian equities and a widening trade deficit in Australia, adding to regional currency concerns.
KRW has weakened against the USD, with the PBOC setting today’s USD/CNY reference rate at 6.8088, above the estimated 6.7929. Investors pulled $137bn from Asian stocks in recent weeks, rebalancing portfolios amid elevated valuations in AI-driven sectors.
Regional equities declined, with South Korea’s Kospi dropping 6% and Japan’s Nikkei falling over 2.5%. US and European equity index futures also traded lower, reflecting broader risk aversion.