South Korean Won Rebounds
The South Korean won strengthened to around 1,360 per dollar, rebounding from four-week lows as oil prices fell sharply. WTI crude declined 4.5% below $100 a barrel, while Brent fell more than 3% amid hopes for progress in US-Iran diplomacy and a recovery in Saudi oil shipments. The US 10-year Treasury yield also fell back below 5% after reaching recent highs last week, easing demand for the dollar. Additionally, South Korea’s strong export performance continued to underpin the won, with exports surging 78% year-on-year in the first 20 days of September, driven by a 259% jump in semiconductor shipments and boosting dollar inflows. Meanwhile, the dollar remained relatively firm as markets monitored the possibility of another Federal Reserve rate increase later this year. Separately, the Bank of Korea said it would assess inflation, growth and financial stability when determining the timing and pace of further rate hikes.
The South Korean won strengthened to around 1,360 per dollar, rebounding from four-week lows as oil prices fell sharply. 5% below $100 a barrel, while Brent fell more than 3% amid hopes for progress in US-Iran diplomacy and a recovery in Saudi oil shipments. The US 10-year Treasury yield also fell back below 5% after reaching recent highs last week, easing demand for the dollar. Additionally, South Korea’s strong export performance continued to underpin the won, with exports surging 78% year-on-year in the first 20 days of September, driven by a 259% jump in semiconductor shipments and boosting dollar inflows.
Meanwhile, the dollar remained relatively firm as markets monitored the possibility of another Federal Reserve rate increase later this year. Separately, the Bank of Korea said it would assess inflation, growth and financial stability when determining the timing and pace of further rate hikes.