South Korean won extends gains near strongest level since July 2025
The won traded around 1,355 per dollar, extending gains to its strongest level since early July 2025. Easing expectations for another US rate hike weakened the dollar as Treasury yields fell.
The South Korean won traded around 1,355 per dollar, extending its gains to its strongest level since early July 2025. The move came as easing expectations for another US rate hike weakened the dollar and pushed Treasury yields lower. Fed Governor Christopher Waller said he supported keeping rates steady if inflation continues to cool, prompting markets to cut the probability of a September hike to around 50% from 63% previously. The 10-year Treasury yield fell after reaching its highest level since November 2023.
South Korea also reported a strong external balance, with the current account posting a $42.08 billion surplus in July. That was the second-largest monthly surplus on record and the biggest ever for July, with semiconductor-led goods exports still robust. Renewed US plans for targeted semiconductor tariffs tied to companies’ domestic production could weigh on the currency outlook, given the importance of chip exports to Korea’s trade balance.