South Korean Won Falls as Overseas Dollar Demand Persists

The South Korean won traded around 1,345 per dollar, reversing recent gains amid persistent demand for overseas assets and foreign equity outflows. South Korean residents' growing investment in foreign securities has become a structural source of dollar demand, as net purchases of overseas securities rose 71.5% month-on-month to $7.09 billion in October, weakening the traditional link between trade surpluses and won appreciation. Additionally, resident foreign-currency deposits reached a record $154.7 billion in September, up $14 billion from the previous month, reflecting increased exporter dollar receipts and funds held for overseas bond investments. Meanwhile, strong export performance and exporter dollar conversions continue to provide support, with October exports surging 93.7% year-on-year to a record $115.3 billion, led by a 259% jump in semiconductor shipments to $56.4 billion.