Markets await Friday’s BOK – DBS meeting

USD/KRW bounced back towards 1350, hitting its highest level since mid-August. At the time of writing, it was trading around this level, notes DBS FX analyst Philip Wee.

The BOK is expected to start its rate cut cycle

“USD/KRW bounced back towards 1350, hitting highest since mid-August.”

“FTSE Russell’s announcement yesterday that it will include Korean government bonds in its global government bond index is positive and could eventually attract $60 billion in inflows.”

“However, as the change will only be implemented in September 2025, there may not be a big short-term boost for the KRW. Instead, markets will focus on the BOK meeting tomorrow, where the Bank is expected to begin its rate cut cycle.”