Won and Asian FX: KRW, TWD, INR and ASEAN Currencies — 2026-09-03
The South Korean won surged to a 14-month low against the dollar as exporter dollar-selling overwhelmed hawkish Fed signals, while the Indian rupee hit a two-month peak following aggressive RBI intervention and massive foreign inflows. Conversely, the Indonesian rupiah remained under pressure near 17,700 per dollar due to oil-driven risk-off sentiment, despite Bank Indonesia’s continued market smoothing efforts.
Won and Asian FX: KRW, TWD, INR and ASEAN Currencies — 2026-09-03
Top developments
KRW hits 14-month low as exporters dump dollars
On September 3, 2026, the Korean won closed at 1,359.3 per dollar, a 9.4 won drop from the previous session, marking its strongest level in 1 year and 2 months. The move was driven by heavy dollar-selling from Korean exporters seeking to convert earnings amid seasonal demand, which outweighed the upward pressure from rising US Treasury yields and hawkish comments from Fed Chair Kevin Warsh. This sharp appreciation contrasts with the earlier August close of 1,368.6, where month-end selling had already begun to cap the pair.
INR breaks 95 barrier on RBI reserve buildup
The Indian rupee strengthened to a two-month high of 94.26 per dollar on September 3, gaining 47 paisa in early trade as the Reserve Bank of India (RBI) successfully mobilized $136.38 billion in foreign exchange through special deposit schemes. Bloomberg reports that the RBI has intensified intervention whenever the rupee weakens, emboldened by this jump in reserves to counter pressure from higher oil prices. This shift has allowed the rupee to break below the psychological 95 level for the first time in two months, signaling robust central bank support.
Rupiah struggles near 17,700 despite BI smoothing
The Indonesian rupiah remained under pressure, trading around Rp17,717–Rp17,758 per dollar in early September, weighed down by global oil price surges and US-Iran tensions. Despite Bank Indonesia Governor Destry Damayanti affirming the central bank's commitment to optimizing foreign exchange market interventions to maintain stability, the currency failed to sustain gains. The rupiah had briefly strengthened to Rp17,730 on September 3 as the dollar softened against a rising yen, but structural demand for dollars kept it capped near the 17,700 level.
Local view
In Korea, local financial media highlighted the disconnect between geopolitical risks and currency strength; Betanews noted that while Middle East tensions and rising US rates typically weaken the won, the sheer volume of exporter dollar-selling ("nego") created a floor that pushed the rate into the 1350s. Seoul Economic Daily analysts pointed out that the previous week's close at 1,368.6 was already a signal of this underlying supply-demand imbalance, which has now fully materialized.
In India, local outlets like Mathrubhumi and TV9 Hindi celebrated the rupee's recovery as a direct result of the RBI's successful "superhit" plan to attract dollar inflows via NRI deposits and FCNR schemes, which brought in $136 billion by late August.
Context & numbers
- KRW/USD: Closed at 1,359.3 on Sep 3 (down 9.4 won); previous close Aug 31 was 1,368.6
- USD/INR: Opened at 94.26 on Sep 3 (strongest in 2 months); settled at 94.95 on Sep 1
- USD/IDR: Traded between 17,717 and 17,758 in early September; JISDOR reference rate was 17,746.00 on Aug 31
- RBI Reserves: Mobilized $136.38 billion via special deposit schemes by end-August
On the radar
- Bank of Korea Reserves: The BOK is scheduled to release official foreign reserves data for August 2026, which may provide insight into recent smoothing operations.
- Fed Policy Watch: Markets are closely monitoring Fed Chair Kevin Warsh's upcoming remarks; his hawkish stance in late August initially pressured Asian currencies before exporter flows took over.
- Japan Intervention Threat: Japanese diplomat Atsushi Mimura reiterated on Sept 3 that authorities remain ready to act in FX markets, keeping yen volatility high and affecting cross-rates for KRW and IDR.
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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