FX.co ★ South Korean Won Nears More Than 9-Month High

The South Korean won strengthened toward 1,422 per dollar, nearing its highest level in more than nine months, supported by improved external buffers and steady foreign capital inflows. South Korea’s foreign exchange reserves increased for a second consecutive month in July, reaching $427.95 billion. The rise was driven by the issuance of foreign-exchange stabilization bonds and an increase in foreign currency deposits, bolstering confidence in the country’s capacity to manage external risks. Separately, US Treasury Secretary Scott Bessent underscored the recent volatility in the won, emphasizing the importance of regional currency stability following the joint US-Japan intervention to support the yen and signaling that policymakers remain focused on curbing excessive FX volatility. The won also continued to draw support from foreign inflows related to SK Hynix’s ADR offering, with the proceeds converted into won to finance domestic semiconductor investments.