Won and Asian FX: KRW, TWD, INR and ASEAN Currencies — 2026-09-09

Top developments

Won Slips to 23-Month Low on Yen Sympathy and Exporter Flows

On September 9, the USD/KRW pair closed at 1,336.1, marking the won’s strongest level since October 2024. The decline was driven by a sharp appreciation in the Japanese yen, which pressured regional peers through correlation, combined with concentrated dollar-selling by Korean exporters seeking to repatriate funds. This move signals a shift in NDF market sentiment, with offshore forwards pricing in continued won strength as the Bank of Korea monitors volatility without immediate intervention.

RBI Extends Intervention Streak to Cushion Rupee from Oil Shock

The Reserve Bank of India (RBI) intervened in the foreign exchange market again on September 8 and 9 to prevent the rupee from falling further against the dollar, which traded near 94.50–94.95 levels. Traders reported that the central bank sold dollars to smooth out volatility caused by rising crude oil prices due to Middle East tensions. This sustained smoothing operation highlights the RBI's priority in managing import costs despite record-high foreign exchange reserves.

Rupiah Strengthens on Dollar Weakness and Stable Outlook

The Indonesian rupiah strengthened to approximately Rp17,567 per US dollar on September 9, reversing earlier weakness. The currency benefited from a broader global softening of the US dollar index ahead of US CPI data releases. Bank Indonesia’s ample foreign reserve ammunition continues to provide a floor for the rupiah, supporting stability in ASEAN currency baskets.

Local view

South Korea: Local financial media highlighted that the won’s drop below 1,335 was partly mitigated by news of the National Pension Service (NPS) halting certain currency hedging operations, which reduced panic selling but did not stop the overall downtrend. Analysts noted that foreign investors’ net buying in the Kospi also supported the won’s strength.

India: Hindi-language outlets reported that the rupee opened lower by 21 paise at 94.95 on Wednesday due to crude oil concerns, but recovered slightly due to RBI intervention. AajTak emphasized that the rupee had recently hit a two-month high, driven by record forex inflows into India.

Indonesia: Local reports noted that the rupiah’s movement was "stable" and supported by strong foreign reserves ("amunisi cadev"). Market participants are watching the USD/IDR pair closely as it hovers near the Rp17,500–17,600 range.

Context & numbers

• USD/KRW: Closed at 1,336.1 on Sept 9, down 9.5 won from the previous day’s weekly close. The intraday low touched 1,334.7, the best level since October 2024.
• USD/INR: Traded between 94.42 and 94.95 during the week, with the RBI intervening to keep it above 94.50 levels.
• USD/IDR: Strengthened to Rp17,567 on Sept 9, up from Rp17,629 on Sept 8.
• Korea Current Account: The Bank of Korea reported a current account surplus of $42.08 billion for July 2026, providing fundamental support for the won.

On the radar

• US CPI Data: Markets are holding positions ahead of the upcoming US Consumer Price Index release, which will dictate the next move for the dollar and Asian currencies.
• BOJ Policy Decision: The Bank of Japan’s upcoming rate decision is a key driver for the yen, which is currently leading the won’s strength; any hawkish surprise could further weaken the USD/KRW pair.
• NPS Hedging Updates: Any further clarification on the National Pension Service’s currency hedging strategy could cause volatility in the Seoul FX market.