South Korean Won Hits 5-week High

The South Korean Won touched 1504.00 against the USD, the highest since June 2026. Over the past 4 weeks, US Dollar South Korean Won lost 1.27%, and in the last 12 months, it increased 9.43%.

The South Korean won strengthened to around 1,505 per dollar, hitting its highest level in over a month, as a record current account surplus underscored the country's strong external position. South Korea's current account surplus widened to an all-time high of USD 38.61 billion in May, driven by a record goods surplus and a 167.7% surge in semiconductor exports. Sentiment was also supported after the government reaffirmed plans to unveil a roadmap later this month to advance the internationalization of the won, including efforts to make it a more freely convertible currency as part of broader foreign exchange market reforms. However, escalating tensions in the Middle East boosted oil prices and supported demand for the US dollar following fresh US strikes on Iran and attacks near the Strait of Hormuz, keeping global risk sentiment cautious. Investors also awaited the minutes of the Federal Reserve's June policy meeting for further clues on the US interest-rate outlook.

The South Korean won strengthened to around 1,513 per dollar, rebounding sharply after nearing its weakest level since 2009 as weaker-than-expected US June jobs data weighed on the dollar. The report reinforced expectations that the Federal Reserve could pause further policy tightening, supporting Asian currencies. South Korea also officially launched 24-hour foreign exchange trading, a landmark reform aimed at improving foreign investor access, deepening onshore market liquidity, and enhancing the won's global accessibility as authorities continue broader foreign exchange market reforms. However, the currency remained under pressure from persistent foreign equity outflows, which continued to limit the won's recovery and kept it among Asia's weakest-performing currencies this year. Investors also awaited the minutes of the Federal Reserve's June policy meeting later this week for fresh clues on the US interest-rate outlook.