Won Slides to 23-Month Low Amid Yen Strength and Dollar Selling

The Korean won continued its downward trend against the US dollar, closing at a 23-month low of 1,336.1 won on September 9th. This marks the lowest level in about one year and 11 months, since October 4, 2024.

The won-dollar rate had attempted to rise in the morning but ultimately extended losses after midday as the Japanese yen remained firm due to expectations of a further Bank of Japan rate increase and dollar selling flowed in.

The yen's strength has fueled demand for the won, with Mitsubishi UFJ Financial Group noting that the yen-dollar rate fell to 152.88 yen during the session.

Japanese wage growth came in strong at 4.7% from a year earlier, further fueling expectations of another rate increase this year.