FX.co ★ South Korean Won Nears Over 1-Month High

The South Korean won strengthened to around 1,509 per dollar, approaching its highest level in more than a month, after a record current account surplus highlighted the country’s solid external position. South Korea’s current account surplus widened to an all-time high of USD 38.61 billion in May, driven by a record goods surplus and a 167.7% surge in semiconductor exports. Sentiment was further supported as the government reiterated plans to present a roadmap later this month to promote the internationalization of the won, including steps to make it more freely convertible as part of broader foreign exchange market reforms.

However, mounting tensions in the Middle East pushed oil prices higher and bolstered demand for the US dollar, following fresh US strikes on Iran and attacks near the Strait of Hormuz, keeping global risk appetite subdued. Investors also awaited the minutes of the Federal Reserve’s June policy meeting for additional signals on the US interest rate outlook.