FX.co ★ South Korean Won Extends Gains

The South Korean won hovered around 1,414 per dollar, staying close to the more than ten‑month high reached last week, supported by sustained dollar-selling flows. The currency continued to draw strength from the conversion of SK hynix’s ADR proceeds into won, a major driver of its sharp appreciation in recent weeks.

Further underpinning the currency, semiconductor exports jumped 155.4% year-on-year in the first ten days of August to $9.95 billion, highlighting Korea’s strong semiconductor-led external position and the boost from robust global AI-related demand.

At the same time, rising expectations of a Federal Reserve rate hike in September have provided some support to the US dollar, capping further gains in the won ahead of key US inflation releases. Meanwhile, uncertainty in the Strait of Hormuz and higher oil prices remain headwinds, stoking concerns about Korea’s import costs and inflation outlook.