During a press conference on January 21 in Seoul, South Korean President Lee Jae Myung conveyed expectations from relevant governmental authorities that the South Korean won will likely strengthen to around 1,400 per U.S. dollar within the ensuing one or two months. Following his remarks, the won appreciated by 0.3%, trading at 1,472.5 per dollar, recovering from a session low of 1,481.4, which was its weakest level since December 24.
President Lee acknowledged that relying solely on domestic policies will not suffice to reverse the recent downward trend of the won. He attributed some of the won's depreciation to movements in the Japanese yen, which has experienced weakness, noting that the won’s performance remains comparatively stronger. He affirmed a continuing commitment among authorities to explore sustainable policy instruments aimed at stabilizing foreign exchange rates effectively.
This outlook underscores the complexities within the currency markets, where external factors such as regional currency fluctuations influence national exchange rates, thereby complicating unilateral domestic efforts. Ongoing attempts to develop and implement robust strategies will be critical in fostering exchange rate stability.