South Korean won strengthens near two-year high on export support
The South Korean won traded around 1,345 per dollar, its strongest level since October 2024, as record exports and rising semiconductor shipments supported demand. Corporate banks’ dollar deposits hit about $77 billion, while Fed-hike odds rose.
The South Korean won traded at around 1,345 per dollar, its strongest level since October 2024, as robust export earnings supported the currency. 4 billion so far this year, already surpassing the 2025 annual record. 6% in January-August on strong demand for AI-related chips. Continued foreign investment in Korean equities also supported demand for the won, while corporate dollar deposits at the country’s five major banks climbed to a record of roughly $77 billion as exporters accumulated foreign-currency proceeds and delayed converting them into won.
The won has strengthened by roughly 250 won from its July low. Markets also raised the probability of a September Fed rate hike to around 60% from roughly 50%, keeping the Fed outlook a headwind for the won.