Korean Won Slides as BOK Signals Risk

2026-01-22 03:17 By Mariene Camarillo 1 min. read

The South Korean won slipped to around 1,467 per dollar, extending losses for another session as investors assessed recent comments from Bank of Korea Governor Rhee Chang-yong.

Speaking at a conference earlier this week, Rhee announced that the currency is trading well below levels justified by economic fundamentals but warned that any rebound could be volatile.

Rhee stated that the exchange rate has been driven up by long-standing expectations of further won depreciation, which may take time to reverse.

He also pointed out that the heavy overseas investing by institutions like the National Pension Service and retail investors, often without currency hedging, could amplify market volatility if the exchange rate adjusts sharply.

Meanwhile, sentiment in domestic markets found some support, with the composite consumer sentiment index rebounding on easing inflation concerns and a more favorable employment outlook.



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