FX.co ★ South Korean Won Hits Over 5-Month High

The South Korean won strengthened to around 1,441 per dollar in late July, extending its rally to the strongest level since late February. The currency was supported by increased dollar supply from exporters and corporate foreign-exchange conversions. In particular, SK hynix’s repatriation of proceeds from its US listing, together with month-end settlements by exporters, helped counterbalance dollar demand stemming from foreign investors liquidating South Korean equities amid the recent stock market selloff.

The won also gained support from improving export sentiment. Record semiconductor earnings and resilient AI-driven demand for memory chips bolstered expectations of continued strength in South Korea’s key export industries and sustained foreign currency inflows. In addition, the Federal Reserve’s decision to leave interest rates unchanged eased concerns over an imminent rate hike, weakening the US dollar and reducing depreciation pressure on the won.

At the same time, rising tensions between the United States and Iran, and the associated risk of oil price volatility, remained potential headwinds for the currency.