FX.co ★ Korean Won Rises on Equity Inflows and Export Growth

The South Korean won appreciated to around 1,336 per dollar, its strongest level since late October, supported by robust export growth and easing foreign selling pressure. Sentiment improved on the back of solid domestic data: exports in the first 10 days of November more than doubled year-on-year, propelled by a 331.2% surge in semiconductor shipments, while employment increased by 139,000 in October, marking a fourth consecutive month of job gains.

Additional support came from foreign investors turning net buyers of Korean equities in the previous session. Risk appetite was further buoyed by hopes of a diplomatic breakthrough between the US and Iran and by expectations of fewer US military strikes, which helped ease concerns over prolonged disruptions to Middle Eastern oil supplies.

Nonetheless, the won’s advance was capped by a stronger US dollar, as hotter-than-expected US inflation data and hawkish commentary from Federal Reserve officials reinforced expectations of further interest rate hikes.