Won and Asian FX: KRW, TWD, INR and ASEAN Currencies — 2026-10-25
The Korean won strengthened to a two-year high against the dollar this week, driven by robust semiconductor exports and dollar supply, while the Indonesian rupiah faced significant pressure, breaching the 18,000 level due to MSCI sentiment and global risk-off trends. The Indian rupee stabilized near 94.93 amid RBI interventions, as investors monitored central bank actions across Asia to manage volatility in key emerging market currencies.
Won and Asian FX: KRW, TWD, INR and ASEAN Currencies — 2026-10-25
Top developments
Korean Won Reaches Two-Year High On October 19, the Korean won closed at 1,330.30 per dollar, marking its strongest close in more than two years. This strength was attributed to chip-driven current account surpluses and increased dollar supply from exporter conversions. Although the won weakened slightly to 1,324.6 by October 23, it remained near yearly lows, reflecting sustained resilience.
Indonesian Rupiah Breaches 18,000 Level The Indonesian rupiah faced intense selling pressure, falling to 18,022 per dollar after Bank Indonesia held its benchmark rate at 5.75%. Bank Indonesia vowed continuous intervention in the foreign exchange market to stabilize the currency after it breached the psychological 18,000 threshold. The decline was exacerbated by negative sentiment regarding MSCI index adjustments and global risk-off trends.
Indian Rupee Stabilizes Near 95 The Indian rupee closed at 94.93 against the US dollar, depreciating by 12 paise amid rising crude oil prices and sluggish domestic demand. Despite the pressure, the Reserve Bank of India's recent interventions have helped the currency recover from earlier lows near 96.79. Analysts note that the RBI's strict measures have provided a floor, though long-term depreciation risks remain.
Local view
In South Korea, local media highlighted the dichotomy between a falling stock market (KOSPI) and a strengthening won, attributing the currency's resilience to semiconductor export revenues. Traders reported that the Bank of Korea likely engaged in "smoothing operations" (dollar buying) when the won hit 1,321.5, preventing an overshoot.
In Indonesia, local stakeholders and media outlets like Kompas and Antara News focused on Bank Indonesia's aggressive stance, noting the central bank's preparation of DNDF (Domestic Non-Deliverable Forward) interventions to counter MSCI-related sentiment.
Context & numbers
- USD/KRW: Closed at 1,324.6 on Oct 23; hit two-year high at 1,330.3 on Oct 19.
- USD/IDR: Closed at 18,022 on Oct 22; breached 18,000 level.
- USD/INR: Closed at 94.93 on Oct 23; recovered from 96.79 lows earlier in the month.
- RBI Reserves: India's foreign exchange reserves dipped by $5 billion to $721.016 billion, reflecting RBI's defensive interventions.
On the radar
- Bank Indonesia Interventions: Monitor further DNDF and spot market interventions by Bank Indonesia as they attempt to stabilize the rupiah above the 18,000 mark.
- Crude Oil Impact: Watch for continued pressure on oil-importing currencies (INR, IDR) as crude prices remain volatile.
- MSCI Sentiment: Investor reaction to MSCI index changes continues to drive short-term volatility in the Indonesian rupiah.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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