Bank of Korea Rate Hike Keeps Won Firm Amid Regional Stock Gains

The Bank of Korea's decision to raise its benchmark interest rate to 3.00% for the second straight meeting has helped keep the South Korean won steady against the US dollar.

Nvidia's upbeat earnings report also boosted chip-heavy stocks in Korea and Taiwan, contributing to a stronger regional risk appetite.

The Bank of Korea paired its rate hike with a higher growth outlook, signaling that it is still focused on inflation. This combination has supported the won by increasing its 'carry' and making it more expensive for traders to bet against it using interest-rate differences.

Maybank, a Southeast Asian bank, is 'cautiously optimistic' about the currency, expecting one more quarter-point hike in 2026 to 3.25%.