USD/KRW dipped to 1380 on corporate dollar selling but faces consolidation amid high oil prices and Fed event risks.
The South Korean won extended its rally, pushing USD/KRW to a low of 1380, driven by exporter and corporate US dollar selling and a softer greenback. Strong exports, up 56% year-over-year in early August, and a trade surplus supported the move, though mixed foreign equity flows limited gains.
After the sharp decline, analysts warn consolidation risks are rising. Elevated oil prices and US long-end yields, alongside upcoming Bank of Korea and Jackson Hole events, could trigger a pause. The BoK’s monetary policy decision on Thursday and Fed signals may determine whether the KRW extends gains or stabilizes.
Technical indicators suggest mild bullish momentum has faded, with the relative strength index near oversold levels. Support lies at 1380 and 1375, while resistance is seen at 1398 and 1406.