Won and Asian FX: KRW, TWD, INR and ASEAN Currencies — 2026-10-21
The South Korean won hit a two-year low against the dollar as semiconductor export profits fueled dollar selling, while the Indian rupee rallied to a six-week high on Jio IPO inflows and RBI intervention. In Indonesia, the rupiah hovered near the critical 18,000 level amid Bank Indonesia's defensive stance against MSCI reclassification fears.
Won and Asian FX: KRW, TWD, INR and ASEAN Currencies — 2026-10-21
Top developments
Won hits two-year low on export conversions
On October 21, the Korean won closed at 1,325.2 per dollar, marking the fourth consecutive day of setting year-to-date lows. This strength was driven by heavy dollar selling from semiconductor exporters converting overseas profits, known as "nego" flows, which outweighed foreign equity outflows. The pair had already hit 1,330.3 the previous day, the lowest level of 2026, reflecting a 14.5% drop from the year's high.
Rupee surges to six-week high on Jio IPO inflows
The Indian rupee strengthened to 94.43 per dollar, a six-week high, gaining 48 paise in the session. This recovery was bolstered by dollar inflows from the Jio Platforms IPO and continued intervention by the Reserve Bank of India (RBI) to curb speculative bets. Despite the IMF urging currency flexibility, the RBI maintained its defensive posture, helping the rupee recover from earlier lows near 96.79.
Rupiah struggles near 18,000 amid MSCI and Fed pressure
The Indonesian rupiah faced volatility, trading around 17,995 to 18,022 per dollar as market participants weighed MSCI reclassification risks and Fed policy expectations. Bank Indonesia (BI) maintained its benchmark rate at 5.75% to support stability, while continuing interventions in the foreign exchange and domestic bond markets. The currency briefly breached the psychological 18,000 level earlier in the week, prompting heightened scrutiny of BI's smoothing operations.
TWD and KRW dip on chip sector selloff
Earlier in the week, the Taiwan dollar and South Korean won led Asian losses as a selloff in US semiconductor stocks dampened sentiment for AI supply-chain currencies. Although the won later recovered on export flows, the initial drop highlighted the region's sensitivity to tech sector volatility.
Local view
In Korea, Seoul Economic Daily notes that the won's strength is "isolated" relative to peers like the yen and yuan, driven specifically by the current account surplus from semiconductor exports. Local analysts at KB Think highlight that the convergence of exporter dollar sales and unwinding of FX hedges is pushing the won to new year-to-date lows. In India, Moneycontrol Hindi reports that the Jio IPO's "booster dose" of foreign capital was critical in pulling the rupee away from its recent lows. Indonesian media, including Kontan, remains focused on BI's ability to defend the rupiah against imported inflation from high oil prices.
Context & numbers
- USD/KRW: Closed at 1,325.2 on Oct 21, down 2.9 won from the previous session.
- USD/INR: Closed at 94.43, a six-week high for the rupee.
- USD/IDR: Traded near 18,000, with BI holding rates at 5.75%.
- NDF Flows: Non-residents' average daily offshore NDF trading fell 7.9% in September to $22.78 billion, partly due to the shift to 24-hour domestic trading.
On the radar
- Bank Indonesia Meeting: Markets await further guidance on BI's stance as the rupiah hovers near 18,000.
- RBI Speculation Watch: The RBI has signaled it will consider additional steps to curb speculative bets in the forex market.
- US Bond Yields: Continued strength in US yields remains a headwind for oil-importing Asian currencies.
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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