South Korean Won Hits 2-Month High

2026-07-14 03:04 By Erika Ordonez 1 min. read

The South Korean won strengthened to around 1,486 per dollar, extending gains toward its highest level since mid-May, as investors increasingly priced in a Bank of Korea interest rate hike later this week.

Persistent inflation, resilient economic growth, and elevated household debt reinforced the case for the central bank's first rate increase in more than three years, supporting the local currency.

The won also drew support from anticipated foreign exchange inflows, with SK Hynix expected to convert part of the proceeds from its $26.5 billion US listing into won for domestic investment, increasing dollar supply in the local foreign exchange market.

Meanwhile, investors remained cautious as they monitored heightened Middle East tensions after the US reinstated a blockade of Iranian ports and President Donald Trump announced a 20% charge on cargo passing through the Strait of Hormuz, fueling concerns over higher energy costs, lifting oil prices, and supporting demand for the US dollar.



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South Korean Won Hits 2-Month High
The South Korean won strengthened to around 1,486 per dollar, extending gains toward its highest level since mid-May, as investors increasingly priced in a Bank of Korea interest rate hike later this week. Persistent inflation, resilient economic growth, and elevated household debt reinforced the case for the central bank's first rate increase in more than three years, supporting the local currency. The won also drew support from anticipated foreign exchange inflows, with SK Hynix expected to convert part of the proceeds from its $26.5 billion US listing into won for domestic investment, increasing dollar supply in the local foreign exchange market. Meanwhile, investors remained cautious as they monitored heightened Middle East tensions after the US reinstated a blockade of Iranian ports and President Donald Trump announced a 20% charge on cargo passing through the Strait of Hormuz, fueling concerns over higher energy costs, lifting oil prices, and supporting demand for the US dollar.
2026-07-14
South Korean Won Eases from Over 1-Month High
The South Korean won fell to around 1,505 per dollar, easing from a more than one-month high near 1,498, amid renewed US-Iran military strikes and rising oil prices. The two countries exchanged fresh attacks over the weekend, while Tehran claimed it had closed the Strait of Hormuz, raising concerns over disruptions to global oil supplies and fueling fears of higher energy costs. The escalation also dampened global risk sentiment, prompting investors to favor safe-haven assets and the US dollar as crude prices climbed. Meanwhile, expectations that SK Hynix will convert a substantial portion of the proceeds from its $26.5 billion Nasdaq listing into won for domestic investments helped temper pressure on the currency by boosting dollar supply in the domestic foreign exchange market. Investors also looked ahead to this week's Bank of Korea policy decision for further guidance on the interest-rate outlook and policymakers' assessment of inflation, economic growth, and financial conditions.
2026-07-13
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%.
2026-07-08