KRW: Bank of Korea to manage volatility – Commerzbank
By FXStreet Insights Team
Date Published: 5 Feb 2026 | Date Modified: 5 Feb 2026
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The Korean Won is under pressure despite a benign macro backdrop, with recent GDP data showing contraction. The Bank of Korea is expected to maintain its policy rate amid rising home prices and volatility in the KRW.
The Korean Won is under pressure despite a benign macro backdrop, with recent GDP data showing contraction. The Bank of Korea is expected to maintain its policy rate amid rising home prices and volatility in the KRW. Commerzbank FX Analyst Moses Lim notes that USD-KRW may remain within a specific range.
BoK's cautious approach to policy
"We expect BoK to leave the policy rate unchanged at 2.5% at the next meeting on 26 February."
"For BoK, it is likely to step up efforts to reduce excessive volatility rather than to target any particular level."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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