South Korean Won Firms on Export Outlook
The South Korean won traded around 1,357 per dollar, holding close to two-year highs as strong semiconductor demand kept Korea’s export outlook favorable. September exports are forecast to rise 62% year-on-year, while semiconductor exports surged 259.4% in the first 20 days of the month, reinforcing the outlook for export revenues and foreign-currency inflows. Major Korean chipmakers are also expected to report robust third-quarter results amid continued AI-related demand. At the same time, the finance ministry and Bank of Korea agreed to step up cooperation on financial market monitoring and response, while seeking a harmonious policy mix between economic and monetary policies. Meanwhile, higher US Treasury yields raised concerns over wider interest-rate differentials and further Fed hikes. Additionally, oil prices extended gains as uncertainty over a potential US-Iran deal kept Middle East supply concerns elevated.
The South Korean won traded around 1,357 per dollar, holding close to two-year highs as strong semiconductor demand kept Korea’s export outlook favorable. 4% in the first 20 days of the month, reinforcing the outlook for export revenues and foreign-currency inflows. Major Korean chipmakers are also expected to report robust third-quarter results amid continued AI-related demand. At the same time, the finance ministry and Bank of Korea agreed to step up cooperation on financial market monitoring and response, while seeking a harmonious policy mix between economic and monetary policies.
Meanwhile, higher US Treasury yields raised concerns over wider interest-rate differentials and further Fed hikes. Additionally, oil prices extended gains as uncertainty over a potential US-Iran deal kept Middle East supply concerns elevated.