Dollar on backfoot as Treasury yields ease; S. Korean won hits 1-yr high

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Won's fall accelerates as foreign market participants dump $3.4 bn of Korean treasury futures Analysts say the won is trapped in a cycle of decline, official intervention, renewed dollar buying and further depreciation The Kospi index broke through the 4,800 level on Friday, but the South Korean currency fell above the 1,470 won level per US dollar (Courtesy of Yonhap) The South Korean won on Friday fell back above the 1,470 level against the dollar, a day after rare jawboning by US Treasury Secretary Scott Bessent triggered the first rebound in the currency this year. Won undervalued, would be surprised if no rebound: Harvard's Kenneth Rogoff Kenneth Rogoff, an economics professor at Havard University, speaks at the AEA 2026 conference on Jan. 3, 2026  PHILADELPHIA -- The South Korean won is significantly undervalued against the US dollar and is poised for a rebound within the next three years, based on Kenneth Rogoff, an e NPS assets swell past $1 trillion, supercharged by Korean stock rally The National Pension Service, South Korea’s state-run pension fund and its largest institutional investor, has seen its assets climb past 1,500 trillion won ($1 trillion) this year, propelled by a powerful rally in domestic equities led by large-cap technology stocks.based on investm Bessent’s rare FX jawboning sends won surging; question is why now, why Korea? US Treasury Secretary Scott Bessent (Courtesy of Yonhap) WASHINGTON, D.C. – US Treasury Secretary Scott Bessent has made unusually direct intervention in foreign exchange markets, saying South Korea’s won has weakened beyond what the country’s economic fundamentals would justi BOK sends clearer signal of end to easing after holding rate at 2.5% BOK holds its policy rate unchanged at 2.50% at its monetary policy meeting on Jan. 15, 2026  South Korea’s central bank has sent a stronger signal that its easing cycle is on pause after holding rates steady, as pressure on the won and rising inflation risks narrow the scope for fur Korean firms forecast to top global earnings growth as chip boom lifts Kospi past 4,700 The Kospi index closed at a record high of 4,723.10 on Wednesday, up 0.65% from the previous session, while the Kosdaq index closed at 942.18, down 0.72% South Korea is set to post the world’s fastest growth in corporate earnings this year, outpacing the US, China and Japan, as a powerful Won slides to pre-intervention levels; customs office monitors exporters’ dollar flows The South Korean won fell back to levels seen before authorities’ aggressive intervention late last month, underscoring renewed pressure on the currency despite a series of government support measures.The won closed onshore trading at 1,473.7 per dollar on Tuesday, it Near-term dollar strength likely to keep Korean won under pressure, hints Apollo’s Torsten Slok The US economy’s continued outperformance is likely to keep the dollar strong against global peers, including the Korean won, while heavy investor concentration in artificial-intelligence-related trades raises the risk of sharper market volatility if expectations falt Kospi hits fresh record high above 4,300 to ring in New Year; Won starts 2026 on back foot South Korean equities began 2026 on an optimistic note with the benchmark Kospi index scaling new records on Friday South Korean equities began 2026 on an optimistic note with the benchmark Kospi index scaling new records on Friday, as market participants waited to test ​the durability of a recent artifi

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