
The South Korean won strengthened to around 1,485 per dollar, advancing for a fifth straight session and reaching its highest level since mid-May, after the Bank of Korea raised interest rates. The central bank lifted its benchmark interest rate by 25 basis points to 2.75%, as widely expected, marking its first increase since early 2023 as policymakers sought to curb persistent inflation and support the currency following months of depreciation. The decision marked the start of a new tightening cycle, with investors assessing whether policymakers will deliver further rate increases if inflation remains elevated. Meanwhile, gains in the won were limited as fresh US strikes on Iran boosted demand for the safe-haven US dollar and heightened concerns over potential disruptions to global energy supplies. Broader market sentiment also remained fragile as renewed volatility in technology shares weighed on risk appetite.



