After the sharp appreciation of the won over the past few weeks, the pace of US dollar settlement by local exporters in South Korea has slowed down, and the Korean won exchange rate has remained stable. President Lee Jae-myung unexpectedly reshuffled the cabinet and nominated a new finance minister. The dollar fell 0.1% against the won to 1374.10; the exchange rate hit a 13-month low of 1370.95 on Friday. The implied volatility of USD/KRW for the January period was 10.133%, up from 9.945% last Friday. The USD/KRW 200-day moving average is currently around 1473.55; the 100-day moving average is 1478.67; and the 50-day moving average is 1459.52. Bank of Busan economist Lee Young Hwa said that capital flows are still the core driver of the won, and the cabinet reshuffle is expected to have limited impact on the won. The rapid appreciation of the Korean won from July to August is likely to come to an end, and companies are currently investigating the subsequent trend of the won. The South Korean government is likely to still be happy to see the won strengthen, but excessive appreciation of the won may put pressure on it. Lee Young Hwa expects the won to continue to strengthen in the third quarter, with the dollar reaching a maximum of 1,348 against the won.

After the sharp appreciation of the won over the past few weeks, the pace of US dollar settlement by local exporters in South Korea has slowed down, and the Korean won exchange rate has remained stable. President Lee Jae-myung unexpectedly reshuffled the cabinet and nominated a new finance minister. The dollar fell 0.1% against the won to 1374.10; the exchange rate hit a 13-month low of 1370.95 on Friday. The implied volatility of USD/KRW for the January period was 10.133%, up from 9.945% last Friday. The USD/KRW 200-day moving average is currently around 1473.55; the 100-day moving average is 1478.67; and the 50-day moving average is 1459.52. Bank of Busan economist Lee Young Hwa said that capital flows are still the core driver of the won, and the cabinet reshuffle is expected to have limited impact on the won. The rapid appreciation of the Korean won from July to August is likely to come to an end, and companies are currently investigating the subsequent trend of the won. The South Korean government is likely to still be happy to see the won strengthen, but excessive appreciation of the won may put pressure on it. Lee Young Hwa expects the won to continue to strengthen in the third quarter, with the dollar reaching a maximum of 1,348 against the won.