The won exchange rate rose to its highest level since the beginning of November on Friday, continuing the gains of the previous trading day after policymakers curbed the recent weakness of the won. The won rose 1.2% to 1429.85 won against the US dollar, which continued Wednesday's 2.3% increase as domestic markets reopened after the Christmas holidays ended. The trend of the South Korean currency reversed after the exchange rate neared its lowest point in 16 years, when the authorities warned that tough measures would be taken against excessive depreciation. “The rhetorical advice on Christmas Eve still had some effect. Coupled with factors such as broader optimism and risk sentiment, a weak US dollar, and a strong RMB exchange rate, all contributed to the rise of the won,” said Christopher Wong, a monetary strategist at OCBC Bank. He added that if it closes below 1,415 won, the dollar may fall further against the won in 2026.

The won exchange rate rose to its highest level since the beginning of November on Friday, continuing the gains of the previous trading day after policymakers curbed the recent weakness of the won. The won rose 1.2% to 1429.85 won against the US dollar, which continued Wednesday's 2.3% increase as domestic markets reopened after the Christmas holidays ended. The trend of the South Korean currency reversed after the exchange rate neared its lowest point in 16 years, when the authorities warned that tough measures would be taken against excessive depreciation. “The rhetorical advice on Christmas Eve still had some effect. Coupled with factors such as broader optimism and risk sentiment, a weak US dollar, and a strong RMB exchange rate, all contributed to the rise of the won,” said Christopher Wong, a monetary strategist at OCBC Bank. He added that if it closes below 1,415 won, the dollar may fall further against the won in 2026.