The South Korean won weakened to around 1,435 per dollar, reaching its lowest level since early May, as investors reacted to the Bank of Korea’s decision to keep its policy rate unchanged at 2.5%. Policymakers maintained a cautious stance amid persistent concerns over the won’s weakness, high household debt, and rising housing prices, noting that the rate differential with the US Federal Reserve remains wide. Separately, investors remained watchful of the ongoing negotiations on a revised Korea-US investment plan, scaled down from an initial USD 350 billion to about USD 200 billion over eight years, with potential implications for capital flows. At the same time, the dollar held firm globally ahead of the upcoming US inflation data and next week’s Trump-Xi meeting in South Korea, as traders assessed the outlook for Fed policy and trade relations.