Seoul: The South Korean currency rose markedly against the U.S. dollar Monday to reach its highest level in more than two months ahead of the central bank's rate-setting meeting. The Korean won was quoted at 1,427.4 won per dollar, up 6.9 won from the previous session.
According to Yonhap News Agency, this marked the highest level since December 10, when the currency was quoted at 1,426.9 won. The won's strength came as the euro climbed after Germany's conservative leader Friedrich Merz emerged as the winner in Sunday's election. The Korean currency had weakened sharply, staying well above the closely-watched 1,400 won level over the past several weeks in line with the strong dollar.
Concerns about the impact of the Donald Trump administration's tariff plan on the South Korean economy and businesses had also contributed to the won's earlier weakness. Market uncertainty heightened after now-suspended President Yoon Suk Yeol declared martial law on December 3, causing political chaos.
On Tuesday, the Bank of Korea (BOK) is scheduled to hold a policy rate-setting meeting. The BOK kept its benchmark interest rate frozen at 3 percent in its latest session last month to ensure financial stability.