USD/KRW bounced towards 1350, reaching its highest since mid-August. At the time of writing, it was trading around this level, DBS’ FX analyst Philip Wee notes.

BOK is expected to begin its rate cut cycle

“USD/KRW had bounced towards 1350, reaching its highest since mid-August.” 

“FTSE Russell’s announcement yesterday that it would include Korean government bonds into its World Government Bond Index is a positive and could eventually draw USD60bn of inflows.”

“However, as the change will only be implemented in Sep 2025, there may not be a large short-term boost for the KRW. Markets will instead focus on the BOK meeting tomorrow, where the Bank is expected to begin its rate cut cycle.”