FX.co ★ Korean Won Extends Gains on Chipmaker Dollar Sales

The South Korean won strengthened to around 1,330 per dollar, extending its rally to the firmest level since late October. Persistent dollar selling by the country’s semiconductor exporters helped restrain upward pressure on the exchange rate, as chipmakers continued to convert their foreign-currency earnings and provided a key source of support for the won.

Further appreciation, however, was capped by rising global oil prices and higher US Treasury yields, which supported the dollar amid diminishing expectations for US-Iran negotiations and growing speculation about a Federal Reserve rate hike in December.

Separately, Bank of Korea data showed that import prices fell 1.8% month-on-month in October, reversing a 1.9% gain in September. The decline largely reflected a 1.6% appreciation of the won against the dollar and a 2.6% drop in Dubai crude prices.