South Korean Won Extends Gains on Dollar Selling

The South Korean won traded around 1,324 per dollar, extending gains to its strongest level since October 2024, as month-end dollar selling by exporters and offshore investors increased greenback supply. Recent remarks by Bank of Korea Governor Shin Hyun-song highlighting strong export-driven dollar inflows and the won’s undervaluation also reinforced expectations for further currency gains. Meanwhile, South Korea’s GDP expanded 1% quarter-on-quarter in the third quarter, accelerating from 0.6% in the previous quarter and exceeding market expectations of 0.8%, providing additional fundamental support. However, elevated oil prices amid continued Middle East tensions remain a risk, as higher energy import costs could increase demand for dollars. Investors also awaited the Federal Reserve’s policy decision on October 27—28 for further clues on the US interest rate outlook.