South Korean won lifts toward 10-month high near 1,413 per dollar
The South Korean won rises to around 1,413 per dollar, approaching a more than ten-month high as soft US inflation data eases expectations for further Federal Reserve tightening.
The South Korean won rose to around 1,413 per dollar, approaching a more than ten-month high, as soft US inflation data eased expectations for further Federal Reserve tightening and boosted risk appetite.
US producer prices were unchanged month-on-month in July, easing concerns over renewed inflation pressures.
Markets now price in around a 35% chance of a rate hike in September, down from 55% a week earlier, limiting upward pressure on the dollar.
Additionally, persistent dollar-selling flows and renewed foreign demand for Korean assets helped lift the won.
The conversion of SK hynix’s ADR proceeds into won remained one of the key factors behind its sharp appreciation in recent weeks.
Foreign investors’ return to Korean equities has also increased demand for the local currency, while Korea’s strengthening economic recovery, underpinned by strong exports and improving consumption, provides an additional positive backdrop for the won.