Korean Won Rises on Equity Inflows and Export Growth
The South Korean won strengthened to around 1,336 per dollar, reaching its highest level since late October, as robust export growth and easing foreign selling pressure supported the currency. Strong domestic data also lifted sentiment, with exports more than doubling year-on-year in the first 10 days of November, driven by a 331.2% surge in semiconductor shipments, while employment rose by 139,000 in October, marking the fourth consecutive month of job growth. Foreign investors also returned as net buyers of Korean equities in the previous session, providing additional support. Hopes for a US-Iran diplomatic resolution improved risk appetite, while expectations of fewer US military strikes eased concerns over prolonged Middle Eastern oil supply disruptions. However, gains faced headwinds from a stronger dollar as hotter-than-expected US inflation and hawkish Federal Reserve comments reinforced expectations of further rate hikes.
The South Korean won strengthened to around 1,336 per dollar, reaching its highest level since late October, as robust export growth and easing foreign selling pressure supported the currency. Strong domestic data also lifted sentiment, with exports more than doubling year-on-year in the first 10 days of November, driven by a 331.2% surge in semiconductor shipments, while employment rose by 139,000 in October, marking the fourth consecutive month of job growth. Foreign investors also returned as net buyers of Korean equities in the previous session, providing additional support.
Hopes for a US-Iran diplomatic resolution improved risk appetite, while expectations of fewer US military strikes eased concerns over prolonged Middle Eastern oil supply disruptions. However, gains faced headwinds from a stronger dollar as hotter-than-expected US inflation and hawkish Federal Reserve comments reinforced expectations of further rate hikes.