South Korean Won Strengthens Further
The South Korean won strengthened to around 1,351 per dollar, extending its sharp rebound as oil prices continued to fall. US President Donald Trump said a meeting between US and Iranian representatives was “very good,” raising hopes for a diplomatic breakthrough, while oil prices subsequently fell for a sixth straight session, easing inflation concerns and reducing 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 exports and boosting dollar inflows. At the same time, the Asian Development Bank raised its 2026 growth forecast for South Korea to 3.2% from 2.6%, citing strong exports and corporate earnings amid the AI boom. However, the dollar remained relatively firm as hawkish Federal Reserve remarks kept markets pricing roughly a 54% chance of another rate hike in October.
The South Korean won strengthened to around 1,351 per dollar, extending its sharp rebound as oil prices continued to fall. US President Donald Trump said a meeting between US and Iranian representatives was “very good,” raising hopes for a diplomatic breakthrough, while oil prices subsequently fell for a sixth straight session, easing inflation concerns and reducing 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 exports and boosting dollar inflows.
6%, citing strong exports and corporate earnings amid the AI boom. However, the dollar remained relatively firm as hawkish Federal Reserve remarks kept markets pricing roughly a 54% chance of another rate hike in October.