South Korean won hits 13-month high near KRW 1,374 per dollar
The South Korean won traded around KRW 1,374 per dollar, its strongest level since July 2025, as dollar selling by major exporters and supportive month-end flows offset renewed hawkish Fed messaging.
The South Korean won traded around KRW 1,374 per dollar, reaching its strongest level since July 2025, amid continued dollar selling by major exporters.
Month-end flows and strong semiconductor-led export growth highlighted a favorable trade backdrop, with August shipments forecast to rise more than 60% year-on-year and the trade surplus expected to exceed $30 billion.
The won also benefited from the Bank of Korea's back-to-back rate hikes, which lifted its policy rate to 3%, while the central bank raised its 2026 growth forecast to 3.3% on stronger semiconductor exports and domestic demand.
The won has gained roughly 5% against the dollar in August.
However, hawkish comments from Federal Reserve Chair Kevin Warsh reinforced expectations for a September rate hike, supporting the dollar and US Treasury yields.
At the same time, renewed US-Iran tensions pushed oil prices higher, adding to inflation and risk concerns.