The South Korean won is holding its ground against the US dollar, supported by a stable Federal Reserve policy outlook and sustained demand from the artificial intelligence sector, according to a recent note from ING analysts. ING attributes the won’s stability to the Federal Reserve’s decision to keep interest rates steady, which reduces pressure on emerging market currencies, and robust export demand from AI-related industries, particularly semiconductors. The Fed’s pause in its rate hiking cycle has eased concerns about capital outflows from emerging markets. As of this week, the USD/KRW exchange rate has remained below the 1,350 level, a threshold viewed as a key resistance point. The won has strengthened by approximately 2% over the past month, outperforming several of its Asian peers, according to data from the Bank of Korea. ING’s analysts note that the combination of a dovish Fed and strong tech exports provides a solid foundation for the won in the near term, but caution that any unexpected shift in US monetary policy or a slowdown in AI investment could quickly reverse these gains. For businesses, a stable won reduces currency risk, and for investors, it may make Korean assets more attractive, particularly in technology and semiconductor sectors. ING highlights that the Bank of Korea’s monetary policy stance will be crucial, with current indications suggesting it is in no hurry to ease, given lingering inflation concerns.