The South Korean won’s rapid rebound against the dollar is adding uncertainty to the Bank of Korea’s (BOK) benchmark interest-rate decision ahead of the Monetary Policy Board’s Aug. 27 meeting. The won closed at 1,392.6 per dollar on Thursday, down 3.5 won from the previous session’s 1,389.1, but remained below 1,400 for a second straight day. The exchange rate has fallen more than 160 won from around 1,555 in early July. The stronger currency is easing concerns about imported inflation and financial instability, potentially reducing the case for another rate hike. Consumer inflation slowed to 2.8% in July from 3.1% in May and 3.2% in June, while core inflation remained at 2.6%, above the BOK’s target. The BOK raised its benchmark rate from 2.5% to 2.75% last month and said it needed to maintain its rate-hiking stance. Analysts remain divided: some see currency stability and lower import-price pressure as reasons to pause, while others argue that a stronger won may reflect resilient economic fundamentals and could support another hike. Recent won strength has been driven by increased dollar selling from exporters, corporate demand for won, shareholder-return-related conversions by Samsung Electronics and SK hynix, forward dollar sales by shipbuilders and pension funds, and slower foreign selling of Korean stocks.