Asia FX Edges Higher, Korean Won Surges Even As BOK Holds
Most Asian currencies rose on Thursday, recovering a measure of recent losses as the dollar saw some profit taking, with the won appreciating sharply even as the Bank of Korea held interest rates after 18 months of hikes. The South Korean won rose 0.6% and was the best-performing Asian currency for the day, even as the BOK held interest rates at 3.50%, pausing a rate-hike cycle that began in late-2021. But BOK Governor Rhee Chang-yong signaled that the bank could raise rates higher to curb runaway inflation, which is trending close to levels seen during the 1998 Asian financial crisis. The BOK's pause comes amid weakening economic trends in South Korea, as a slowdown in Chinese demand and rising inflation weighed on local economic growth. Broader Asian currencies advanced, with the dollar ...