Won Hits 13-Month High on BOK Rate Hike Ahead of Warsh Speech

The Asian currency market and the US dollar remained steady on August 28 as investors awaited a speech by Federal Reserve Vice Chair Kevin Warsh.

The South Korean won surged to its highest level in over a year against the dollar after the Bank of Korea raised its benchmark interest rate by 25 basis points to 3.50%.

The BOK's decision was unexpected, and analysts noted that any hawkish signals from Warsh could strengthen the dollar, putting pressure on Asian currencies.

The won's appreciation was also supported by improved risk sentiment in the region, as well as expectations of further monetary tightening by the BOK.