2026-01-02 12:24:33

The Korean Won has recently been stuck above 1400 against the US dollar, but this level doesn't accurately reflect the true state of the Korean economy. Although the government and central bank have implemented several measures to stabilize the currency, the Korean Won continues to weaken in the first trading session of the new year. The main reasons are as follows: the interest rate differential between Korea and the US has widened to about 2 percentage points, reaching a multi-year high. Meanwhile, institutional investors and individuals are increasing their demand for US dollars. Under the dual influence of this interest rate differential and the strong US dollar, the pressure on the Korean Won is indeed significant. In the short term, unless the interest rate differential pattern changes, the Won's rebound space will be limited.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

6 Likes

Reward
6
6
Repost
Share

Comment

0/400

GateUser-c802f0e8

· 3h ago

The Korean won really can't hold up this time, with the interest rate differential right there, everyone wants to follow the dollar.

View OriginalReply0

VitalikFanboy42

· 3h ago

The interest rate spread of 2 percentage points really can't be sustained anymore. Will the dollar's bloodsucking continue? Even the Bank of Korea's intervention can't hold it back, indicating that market forces are strong.

View OriginalReply0

FlashLoanKing

· 3h ago

The Korean Won really can't hold up this time. The interest rate spread has widened to 2 percentage points. Who's still watching the Korean Won?

View OriginalReply0

SerumDegen

· 3h ago

ngl the 200bp spread is just unhinged at this point... like watching a liquidation cascade in slow mo. korean won getting absolutely rekt by carry trade mechanics, central bank band-aids won't hold this. unless the rate diff collapses, we're watching capitulation territory fr fr

Reply0

NFTFreezer

· 3h ago

The Korean won really can't hold up this time. The interest rate differential is right there, who wouldn't rush to the US dollar... --- It's the interest rate differential again, a 2 percentage point gap directly pinning the won down. --- Government and central bank efforts to stabilize the exchange rate are useless. Only fools with lots of money keep pouring into the dollar. --- A short-term rebound is unlikely, unless the Federal Reserve suddenly changes course, then just watch the won continue to break below levels. --- Honestly, the 1400 level doesn't reflect Korea's true situation at all; it's all due to the strength of the US dollar. --- Under double pressure, still hoping for a rebound? You're overthinking it. Just wait for the interest rate differential to narrow. --- Institutions and retail investors are both buying the dollar at the bottom. How can the won not weaken? Haha. --- Now I understand. No matter how many measures are taken to stabilize the currency, it's all in vain. The lure of the interest rate differential is too strong. --- The US dollar is so attractive, who cares about the won? In the short term, stabilizing the exchange rate is basically impossible.

View OriginalReply0

BlockchainNewbie