South Korean Won Extends Gains Near 2-Year High
The South Korean won traded around 1,330 per dollar, extending gains toward its strongest level since October 2024, as robust exports and dollar supply from exporters continued to support the currency. Exports surged 83.5% year-on-year to a record $120.94 billion in September, led by a 263% jump in semiconductor shipments, while the average daily trade surplus approached $2.5 billion. US Treasury yields also fell toward four-week lows after Fed Chair Kevin Warsh refrained from signaling the outcome of this month’s policy meeting, with markets pricing in an approximately 84% chance of interest rates remaining unchanged. Meanwhile, foreign investors net sold KRW 11.21 trillion worth of KOSPI stocks last week amid AI investment concerns and growing Chinese competition in memory chips, raising risk of further capital outflows. Additionally, Middle East tensions and attacks on commercial vessels in the Strait of Hormuz heightened oil-supply disruption risks.
The South Korean won traded around 1,330 per dollar, extending gains toward its strongest level since October 2024, as robust exports and dollar supply from exporters continued to support the currency. Exports surged 83.5% year-on-year to a record $120.94 billion in September, led by a 263% jump in semiconductor shipments, while the average daily trade surplus approached $2.5 billion. US Treasury yields also fell toward four-week lows after Fed Chair Kevin Warsh refrained from signaling the outcome of this month’s policy meeting, with markets pricing in an approximately 84% chance of interest rates remaining unchanged.
Meanwhile, foreign investors net sold KRW 11.21 trillion worth of KOSPI stocks last week amid AI investment concerns and growing Chinese competition in memory chips, raising risk of further capital outflows. Additionally, Middle East tensions and attacks on commercial vessels in the Strait of Hormuz heightened oil-supply disruption risks.