South Korean Won Hits 2-Year High
The South Korean won traded around 1,333 per dollar, reaching its strongest level since October 2024, as robust export growth and a trade surplus supported the currency. South Korea’s exports more than doubled year-on-year to a record USD 26.1 billion in the first 10 days of October, led by a 170.9% surge in semiconductor shipments to USD 12.1 billion. The country also posted a USD 3.8 billion trade surplus over the period, reinforcing the favorable external backdrop. Additionally, oil prices eased on hopes that increased Russian diesel supplies could help relieve global fuel shortages, after President Trump said Moscow had agreed to release diesel to global markets and claimed Russia and Ukraine had reached an immediate energy ceasefire. Meanwhile, elevated US Treasury yields and the prospect of further Fed tightening continued to limit the won’s gains. Renewed Houthi attacks on Saudi Arabia over the weekend also added to geopolitical risks.
The South Korean won traded around 1,333 per dollar, reaching its strongest level since October 2024, as robust export growth and a trade surplus supported the currency. 1 billion. 8 billion trade surplus over the period, reinforcing the favorable external backdrop. Additionally, oil prices eased on hopes that increased Russian diesel supplies could help relieve global fuel shortages, after President Trump said Moscow had agreed to release diesel to global markets and claimed Russia and Ukraine had reached an immediate energy ceasefire.
Meanwhile, elevated US Treasury yields and the prospect of further Fed tightening continued to limit the won’s gains. Renewed Houthi attacks on Saudi Arabia over the weekend also added to geopolitical risks.