
The South Korean won weakened to around 1,514 per dollar, ending its recent advance, as demand for the greenback firmed amid cautious positioning ahead of the Federal Reserve’s policy decision. Market participants focused on potential signals from the FOMC under Fed Chair Kevin Warsh regarding the future policy path, with uncertainty over the outlook keeping FX markets defensive. Broader risk-off sentiment, driven by weakness in global technology stocks and declines in US AI-related shares, supported safe-haven flows into the dollar and weighed on Asian currencies. The won also came under pressure from ongoing portfolio rebalancing flows and softer regional risk appetite. Meanwhile, expectations that the Bank of Korea will maintain a relatively tight policy stance helped limit the pace of losses. Authorities’ continued monitoring of foreign exchange volatility also provided additional support.

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