2025-12-26 07:25:33

The forex market experienced an interesting turn on Friday. The Korean won reversed its previous decline, appreciating by 1.2% against the US dollar and jumping to a level of 1,429.85 won per dollar — the strongest performance since November.

What’s even more noteworthy is the story behind it. It’s important to note that the won was previously close to its lowest point in nearly 16 years, and the situation was quite dire. But the Korean authorities clearly did not intend to sit idly by and have stated they would take strong measures against excessive depreciation. This move actually proved effective.

The policy shift in attitude was directly reflected in market reactions. From near historic lows to a rebound within a week, this rapid turnaround indicates that the market’s expectations of government intervention are quite sensitive. Whether the won can continue this rebound depends on the subsequent implementation of policies and changes in the external economic environment.

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ProposalManiac

· 3h ago

Policy expectations are immediately followed by a rebound once realized. Frankly, it's still the market betting on government enforcement— but this also exposes an old problem: once policy signals weaken or external conditions change, how long can the rebound last? Historically, similar intervention cases are usually fleeting; it all depends on whether South Korea has genuine systemic measures afterward or is just aiming for short-term stopgap solutions.

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ApeShotFirst

· 3h ago

The Korean won is soaring directly, as soon as the policy was announced, the market knelt down. This speed is truly incredible.

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GweiWatcher

· 3h ago

The Korean won's rebound this time is truly impressive. As soon as the policy was announced, the market responded obediently. That's why I say the crypto world should learn from the tricks of traditional finance. --- The polite way to say it is "government intervention," and the harsh way is that the printing press has been turned on. Let's see how long the Korean won can hold up. --- Lowest since 2016, and then a rebound in just a week? It feels a bit too perfect... Will it fall back again later? --- This is the power of the central bank—more effective than anything else. Retail investors have nothing to compare with institutions. --- Korean authorities: We do not accept a new historical low. Market: Okay, you win. --- The question is, can this rebound last? It feels like a rebound before a leek-cutting, so it's better to be cautious.

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RugResistant

· 4h ago

govt intervention working as intended... but ngl the recovery's too clean. watched the charts spike right after policy announcement — textbook pump pattern. red flags detected on volume analysis, needs further investigation before fomo kicks in

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FOMOrektGuy

· 4h ago

The recent rebound of the Korean won is quite something; the market was stunned by the government's statement. Is it really effective when the government boldly announces policies? Or will there be no follow-up? How long can this rebound last... I can't bet on it. It's another "statement to boost the market" story, an old trick. Korea's authorities finally remembered to try to rescue the market, but it's a bit late, guys. Policy expectations are basically the market's last lifeline. A 1.2% rebound is nothing; the 2016 lows are still ahead, and this wave is still long. It seems that as long as you dare to stand your ground, the market will kneel—interesting.

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