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2025.09.0502:25:51UTC+00South Korean Won Rises on Fed Cut Expectations, Policy Support

The South Korean won strengthened to approximately 1,390 per dollar, marking a recovery from earlier declines, as the dollar diminished following weaker-than-anticipated US private-sector employment figures. This data bolstered the possibility of a Federal Reserve interest rate cut in the forthcoming meeting. Market sentiment was buoyed after Vice Finance Minister Lee Hyoung-il clarified that Seoul's commitment to invest up to $350 billion in US strategic sectors will be executed gradually via state policy institutions, rather than deployed all at once. This clarification offered enhanced transparency regarding policy execution. Lee also noted that authorities are vigilantly monitoring the foreign exchange markets and are prepared to take necessary actions to stabilize the won. These statements reassured investors of Korea’s policy discipline and further supported the currency.

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