South Korean Won Rises After BoK Hikes Rates by 25 bps

The South Korean Won (KRW) traded higher against the US Dollar (USD) on Monday following the Bank of Korea's (BoK) decision to raise interest rates by 25 basis points. This marks the first rate hike from the central bank in three-and-a-half years, signaling a shift in monetary policy amid inflationary pressures.

The move was widely anticipated by markets but still provided support for the won, pushing it to the stronger side of the 1,180 level against the dollar. The BoK's tightening comes as other major central banks also consider normalizing policy.

Traders will now watch for any further guidance from the BoK regarding the pace of future hikes, as the economy continues to recover from the pandemic.