Won and Asian FX: KRW, TWD, INR and ASEAN Currencies — 2026-09-08
The South Korean won hit a 1-year 11-month low against the US dollar this week, driven by strong exporter dollar selling and yen strength, before rebounding slightly on profit-taking. Meanwhile, the Indian rupee faced pressure from rising crude oil prices and Middle East tensions, prompting continued Reserve Bank of India (RBI) intervention to stabilize the currency near the 94.50 level. In Southeast Asia, the Indonesian rupiah remained stable around Rp17,600–17,700, with Bank Indonesia’s JISDOR reference rate showing modest fluctuations amid broader Asian currency gains linked to a softer dollar and easing Treasury yields.
Won and Asian FX: KRW, TWD, INR and ASEAN Currencies — 2026-09-08
Top developments
Won touches 2-year low on exporter flows and yen strength
On September 7, the Korean won surged to 1,334 per dollar intraday, marking its strongest level in 1 year and 11 months. This drop was fueled by significant dollar selling from Korean exporters and foreign net buying in KOSPI equities, alongside a stronger yen that pressured the dollar region-wide. However, on September 8, the won reversed slightly to trade in the 1,350s as market participants engaged in low-level buying after the sharp decline, and concerns over "downward bias" from authorities emerged.
RBI extends intervention streak to support Rupee
The Indian rupee opened at 94.66 per dollar on Tuesday, September 8, falling 10 paise as rising oil prices due to Middle East tensions weighed on the currency. The RBI has extended its intervention streak, intervening in the forex market on Monday to boost the rupee to 94.42, aiming to curb volatility. Despite earlier gains to a two-month high of 94.26 on September 4 due to strong forex inflows and GDP data, the rupee remains hemmed in by the central bank's smoothing operations and global risk-off sentiment.
Asian currencies rise as yen hits 7-month high
Broader Asian currencies, including the Taiwan dollar and Thai baht, gained ground as the Japanese yen strengthened to a seven-month high, pressuring the US dollar. This shift was supported by easing US Treasury yields and fading expectations of a September Federal Reserve rate hike, which improved sentiment for emerging market assets. While oil prices capped some gains, the general trend saw regional currencies like the ringgit and peso benefiting from the dollar's subdued performance.
Local view
South Korea: Local media Edaily reports that the Ministry of Economy and Finance is now wary of a "downward bias" in the won, a reversal from previous concerns about won weakness. The rapid drop from 1,600-won speculation to the 1,330-won level has triggered caution among authorities regarding short-term volatility.
India: Times Now Navbharat highlights that expensive crude oil has become the "nemesis" of the rupee, causing sharp declines against the dollar despite RBI support. Local analysts note that while domestic growth indicators are positive, external energy shocks remain the primary drag on the currency.
Indonesia: Bisnis.com notes that the rupiah weakened slightly to Rp17,629 on September 8, with local banks citing geopolitical tensions and volcanic activity at Mount Anak Krakatau as minor factors affecting risk sentiment. Sumbarbisnis highlights that the JISDOR rate strengthened to Rp17,618, aligning with the broader Asian trend.
Context & numbers
- KRW/USD: Reached 1,334 on Sept 7 (1-yr 11-mo low); closed Sept 8 in the 1,350s.
- INR/USD: Opened Sept 8 at 94.66; two-month high was 94.26 on Sept 4.
- IDR/USD: Spot traded around Rp17,629–Rp17,758 range this week; JISDOR at Rp17,618 (Sept 8).
- Korea Current Account: Surplus of $42.08 billion in July 2026 (preliminary).
On the radar
- Bank Indonesia Policy Decision: Investors are closely watching for Bank Indonesia's upcoming policy decision, which could influence rupiah stability.
- US CPI and Fed Meetings: Markets are awaiting US CPI data and upcoming Fed decisions, which will drive global yield trends and dollar direction.
- NDF Trends: Offshore NDF markets showed mixed signals, with won NDFs falling 5.2 points on Sept 5 and rising 4.85 points on Sept 7, reflecting volatile sentiment.
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.
Powered by
