South Korean Won Steady on Export Growth

The South Korean won traded around 1,357 per dollar, holding range-bound, supported by strong semiconductor demand and Korea’s robust export performance. September exports surged 83.5% year-on-year to a record $120.9 billion, while semiconductor exports jumped 263% to a record $60.3 billion, driving a record trade surplus of $49.85 billion. Strong export receipts lifted residents’ foreign-currency deposits to a record $140.62 billion in August. Authorities also stepped up measures to stabilize the domestic bond market amid the global sell-off. Meanwhile, higher US Treasury yields remained an offset, with the 10-year yield around 5.3% and the 30-year yield above 5.6%, both near multi-decade highs. Oil prices also climbed above $100 a barrel amid renewed tensions in the Middle East. At the same time, Korea’s CPI held at 2.9% in September, while the BOK warned inflation could stay around 3% in October, raising the prospect of another rate hike.