Bangkok:The South Korean won surged to its highest level against the U.S. dollar in nearly two years on Friday. This strengthening occurred after Federal Reserve Chairman Kevin Warsh provided no clear signals regarding the outcome of an upcoming policy meeting, leading foreign investors to become net buyers of South Korean stocks.
According to Yonhap News Agency, the won was trading at 1,331.4 won per dollar at 330 p.m., marking an increase of 13.2 won from the previous trading session's close, and reaching its strongest level since October 2, 2024.
Warsh's comments at the International Monetary Fund meeting in Bangkok suggested uncertainty about the Federal Reserve's policy direction, which led traders to speculate that the Fed might maintain its current key rate.
The appreciation of the won was further supported by offshore investors reversing an eight-day streak of selling South Korean stocks. Foreign investors bought a net 341.3 billion won (approximately US$256 million) worth of local shares in the latest trading session, helping the benchmark Korea Composite Stock Price Index to rise by 2.05 percent, closing at 5,668.05.