Korean Won Extends Gains on Chipmaker Dollar Sales
The South Korean won strengthened to around 1,330 per dollar, extending gains to its strongest level since late October, as steady dollar selling by the country’s semiconductor exporters helped cap upward pressure on the exchange rate. Chipmakers have remained consistent in converting their foreign-currency earnings, providing a key source of support for the won. However, further gains were limited by rising global oil prices and US Treasury yields, which bolstered the dollar amid fading hopes for US-Iran negotiations and increased expectations of a December Federal Reserve rate hike. Meanwhile, Bank of Korea data showed that import prices fell 1.8% month-on-month in October, reversing a 1.9% increase in September, largely reflecting a 1.6% appreciation in the won against the dollar and a 2.6% decline in Dubai crude prices.
The South Korean won strengthened to around 1,330 per dollar, extending gains to its strongest level since late October, as steady dollar selling by the country’s semiconductor exporters helped cap upward pressure on the exchange rate. Chipmakers have remained consistent in converting their foreign-currency earnings, providing a key source of support for the won. However, further gains were limited by rising global oil prices and US Treasury yields, which bolstered the dollar amid fading hopes for US-Iran negotiations and increased expectations of a December Federal Reserve rate hike.
Meanwhile, Bank of Korea data showed that import prices fell 1.8% month-on-month in October, reversing a 1.9% increase in September, largely reflecting a 1.6% appreciation in the won against the dollar and a 2.6% decline in Dubai crude prices.