FX.co ★ South Korean Won Hits Over 10-Month High

The South Korean won traded around 1,399 per dollar, its strongest level since late September 2025, supported by broad dollar weakness. The US dollar index hovered near multi-month lows as Treasury yields retreated from recent peaks and investors pared back expectations of further Federal Reserve rate hikes in response to softer US economic data, narrowing the dollar’s yield advantage.

Persistent dollar-selling by Korean exporters also underpinned the won, bolstered by robust semiconductor-related export revenues. In particular, the conversion of SK hynix’s ADR proceeds into won has been a major driver of the currency’s sharp appreciation in recent weeks, increasing domestic dollar supply.

However, the outlook for the won faces headwinds from higher oil prices, now near three-week highs, and renewed US-Iran tensions. The lack of progress on peace efforts has heightened concerns over potential disruptions to Middle Eastern oil supplies, which could push up import costs for South Korea and weigh on the local currency.