South Korean Won Strengthens Near 2-Year High
The South Korean won traded around 1,333 per dollar, recovering losses and approaching its strongest level since October 2024, as an easing semiconductor sell-off and renewed appetite for riskier assets lifted the currency. Foreign investors returned to net buying in South Korean equities, purchasing KRW 343.5 billion worth of shares after a prolonged tech-led rout, helping ease concerns over capital outflows. Additionally, Federal Reserve Chair Kevin Warsh's positive assessment of the US economy and AI-driven growth helped revive demand for riskier assets, while declines in US Treasury yields and the dollar offered further support to the won. However, Warsh gave no clear signal on a rate hike this month, while strong US data and inflation concerns reinforced bets on a December hike. Also, persistent AI valuation concerns, Chinese competition in memory chips, and elevated inflation risks remained potential headwinds for Korean markets.
The South Korean won traded around 1,333 per dollar, recovering losses and approaching its strongest level since October 2024, as an easing semiconductor sell-off and renewed appetite for riskier assets lifted the currency. Foreign investors returned to net buying in South Korean equities, purchasing KRW 343.5 billion worth of shares after a prolonged tech-led rout, helping ease concerns over capital outflows. Additionally, Federal Reserve Chair Kevin Warsh's positive assessment of the US economy and AI-driven growth helped revive demand for riskier assets, while declines in US Treasury yields and the dollar offered further support to the won.
However, Warsh gave no clear signal on a rate hike this month, while strong US data and inflation concerns reinforced bets on a December hike. Also, persistent AI valuation concerns, Chinese competition in memory chips, and elevated inflation risks remained potential headwinds for Korean markets.