South Korean Won Hits 10-week High

The South Korean won strengthened to around 1,468 per dollar, reaching its highest level since early May, as stronger domestic growth prospects supported the currency. South Korea's economy expanded 0.6% in the second quarter, beating the Bank of Korea's 0.2% forecast, with robust exports, particularly semiconductors, and resilient private consumption helping offset lingering weakness in construction activity. The won was also supported by sustained foreign investor demand for Korean assets, with overseas investors returning to local equities as the KOSPI recovered, while improving sentiment toward the country's technology sector and export outlook supported capital inflows. Meanwhile, escalating US-Iran tensions and rising oil prices remained a downside risk, with threats of further strikes on Iranian infrastructure and attacks on shipping routes raising concerns over regional instability and potential disruptions to global energy supplies.

The South Korean Won touched 1471.00 against the USD, the highest since May 2026. Over the past 4 weeks, US Dollar South Korean Won lost 4.61%, and in the last 12 months, it increased 7.17%.

The South Korean won traded around 1,480 per dollar, easing from an over two-month high near 1,475, as Middle East tensions supported demand for the US dollar. US strikes on Iran and threats by Houthi militants to blockade the Red Sea heightened concerns over potential disruptions to key shipping routes and global energy supplies. South Korea’s finance ministry said it would closely monitor developments in the region and maintain measures to ensure stable crude oil and naphtha supplies, as the country remains vulnerable to external energy shocks. Meanwhile, the won remained supported by foreign investor inflows into Korean equities as a rebound in semiconductor stocks improved market sentiment. Government efforts to encourage major exporters to convert foreign currency proceeds and repatriate overseas funds also helped improve dollar liquidity and stabilize the currency.