Won Approaches 1400 to the Dollar Amidst Shifting Economic Winds
Seoul,September 4,2025 – The Korean won is nearing the 1400 won per dollar mark,fueled by expectations of potential interest rate cuts and a weakening U.S. dollar, even as concerns linger about a possible “employment shock” impacting the currency. Analysts are closely watching upcoming economic data, particularly Friday’s employment report, for signals of further dollar weakness and a potential influx of foreign investment into the Korean stock market.
the won’s movement comes as global macroeconomic conditions increasingly favor a return of foreign capital to South Korea. Despite earlier concerns, experts suggest the Korean market, currently undervalued due to increased global liquidity from expansionary financial policies in the U.S. and Germany, remains an attractive option for global asset allocation. However, the possibility of a notable downturn in employment figures could trigger expectations of substantial interest rate reductions, potentially bolstering the dollar despite broader weakening trends.
Moon Jung-hee, a researcher at KB Kookmin Bank, anticipates a weak won/dollar exchange rate throughout September, forecasting a range of 1350 to 1400 won. She believes exceeding 1400 won by the end of august is unlikely.
Park soo-yeon, a researcher at Meritz Securities, notes that the weakening dollar is beginning to be reflected in the market.
Eugene Epstein, head of North American structuralization at Moneykov, emphasizes the Federal Reserve’s focus on the labor market. He predicts that continued deterioration in labor market indicators will likely lead to a weaker dollar,and a sluggish employment report on Friday could solidify this trend.
A high-ranking official from a foreign asset manager highlighted the attractiveness of the Korean stock market, citing increased liquidity from financial expansion in major global economies.
