Won and Asian FX: KRW, TWD, INR and ASEAN Currencies — 2026-09-11
The South Korean won surged to a two-year high against the US dollar this week, driven by strong semiconductor exports and yen-linked strength, prompting authorities to monitor the rapid decline. Meanwhile, the Indian rupee faced renewed pressure from rising oil prices, forcing the Reserve Bank of India (RBI) to intervene to stem the fall, while the Indonesian rupiah hovered near Rp17,500 ahead of key policy decisions.
Won and Asian FX: KRW, TWD, INR and ASEAN Currencies — 2026-09-11
Top developments
Won Surges to Two-Year High on Tech Flows and Yen Strength
The Korean won strengthened significantly this week, with the USD/KRW pair touching 1,334.70 on September 8, its best level since October 2024. This rally was fueled by heavy dollar selling from Korean exporters and foreign net buying in the KOSPI, alongside a broader weakening of the US dollar and strength in the Japanese yen. The rapid appreciation has shifted the focus of local authorities from managing depreciation to monitoring "downward bias," with market participants noting that the National Pension Service's halt on FX hedging also contributed to the won's firmness.
RBI Intervenes to Stem Rupee Decline Amid Oil Pressure
The Indian rupee came under pressure from rising crude oil prices and global risk aversion, falling to session lows of 95.2250 per dollar on September 10. Traders reported that the Reserve Bank of India likely intervened in the spot market to support the currency, helping it recover to close around 95.07. This marks an extension of the RBI's intervention streak, aimed at smoothing volatility driven by external energy shocks and outflow risks, despite earlier gains supported by record forex reserves.
Rupiah Consolidates Near Rp17,500 Ahead of BI Policy Watch
The Indonesian rupiah traded in a narrow band, closing at Rp17,547 per dollar on September 10 after depreciating slightly by 36 points during the day. Market participants adopted a wait-and-see approach ahead of Bank Indonesia’s upcoming policy decision and potential announcements regarding US Treasury buybacks. The currency had earlier strengthened to Rp17,632 on September 8, buoyed by higher foreign exchange reserves, but global geopolitical tensions and domestic fiscal concerns capped further gains.
Local view
In Korea, Edaily reported that the government is shifting its tone regarding the strong won, warning that the rapid decline in exchange rates requires careful management to avoid disrupting export competitiveness. The article highlighted that while the current account surplus remains robust, the speed of the won's appreciation over just a few days is unusual and warrants vigilance from the Ministry of Economy and Finance.
In India, Business Recorder cited traders who noted the RBI's active presence in the market, describing the interventions as "smooth rather than defensive." Local media emphasized that while the rupee has recovered some ground from recent lows, the persistent threat of oil-driven inflation keeps the central bank on high alert for further volatility.
Context & numbers
- USD/KRW: Traded between 1,334.70 and 1,346.98 this week, marking a multi-year low for the dollar against the won.
- USD/INR: Closed near 95.07–95.52 range, with intraday volatility driven by RBI interventions and oil prices.
- USD/IDR: JISDOR reference rate was Rp17,636.00 on September 4, while spot rates hovered around Rp17,500–17,550 in the latter part of the week.
- Korea Current Account: Registered a surplus of $42.08 billion in July 2026, supporting structural demand for the won.
On the radar
- US CPI Data: Investors are awaiting next week's US Consumer Price Index release, which will influence Fed rate expectations and potentially trigger volatility across Asian FX markets.
- Bank Indonesia Policy Decision: Market attention is turning to Bank Indonesia's upcoming monetary policy meeting, with expectations of rates remaining steady but guidance on currency stabilization being closely watched.
- BoJ Meeting: The Bank of Japan's policy decision is also on the horizon, with yen movements likely to continue influencing the won and other regional currencies due to high correlation.
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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