Korean Won Traders Test Authorities’ Resolve After Bessent Rally

The South Korean won resumed its decline toward a 17‑year low on Thursday, testing officials’ resolve to stem the slide despite supportive remarks from US Treasury Secretary Scott Bessent.

The won slid 0.5% to 1,470.95, erasing more than half of Wednesday’s gain after Bessent’s comments. The currency has been under pressure as local investors continue to snap up US stocks and importers sought dollars for payments.

Traders also shrugged off Bank of Korea Governor Rhee Chang Yong ’s remarks Thursday following a policy rate decision, when he said the central bank is monitoring foreign‑exchange volatility and that most of the weakness is due to global factors.

The currency’s move Thursday suggests markets see jawboning as insufficient and expect stronger intervention to halt its slide. Authorities’ verbal efforts have failed to curb persistent dollar demand, while pledges to stabilize the currency have been overshadowed by robust US data boosting the dollar and a softer yen.

“While coordinated statements and external policy signals can slow depreciation and trigger short-term pullbacks, they have failed so far to alter positioning,” Philip Wee , a senior strategist at DBS Bank in Singapore, wrote in a note. “Absent credible follow-through actual FX smoothing operations, won weakness will likely persist above the South Korean policymakers’ comfort zone.”

Bessent’s , delivered in a social media post and a statement from his department following his meeting with Korea’s Finance Minister Koo Yun Cheol , stressed that excess volatility was undesirable and inconsistent with Korea’s economic fundamentals.