The South Korean won strengthened to around 1,467 per dollar on Monday, recovering from multi-month lows as sentiment was bolstered by recent domestic developments. Finance Minister Koo Yun-cheol highlighted that, following the budget’s approval, government ministries are initiating measures to reinforce economic growth. Last week, the National Assembly ratified the 2026 government budget at KRW 727.9 trillion, directing increased spending to stimulate economic activity and bolster national defense. Investor sentiment was further supported as South Korean and Japanese business lobbies issued a joint statement pledging closer cooperation in artificial intelligence, semiconductors, and other shared structural priorities. Separately, investors positioned ahead of the Federal Reserve’s two-day policy meeting this week, with markets largely anticipating a 0.25 percentage point cut in the 3.75%–4.0% funds rate.
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