Scott Bessent's Pep Talk Fails to Halt South Korean Won's 17-Year Low Slide

• US Treasury Secretary Scott Bessent's attempt to reassure markets about the South Korean won's value has failed to prevent its slide to a 17-year low.
• Bessent stated the won's depreciation was "not in line with economic fundamentals," suggesting an overreaction by markets.
• His comments briefly lifted the won by 1.15% but the rebound was short-lived, with the currency quickly slipping back.
• Economists attribute the won's weakness to structural pressures like elevated capital outflows from Korean investors into US assets.
• The Bank of Korea has halted its interest rate easing cycle, signaling anxiety over persistent won weakness and domestic risks.

Why It Matters: Despite US Treasury Secretary Scott Bessent's reassurances, the South Korean won continues its 17-year low slide.