South Korean Won Hits 42-week High

The South Korean Won touched 1416.00 against the USD, the highest since October 2025. Over the past 4 weeks, US Dollar South Korean Won lost 6.48%, and in the last 12 months, it increased 2.35%.

The South Korean won rose toward 1,417 per dollar, reaching its strongest level since mid-October last year, as improving external balances and steady foreign inflows supported the currency. South Korea reported a record current account surplus of $49.73 billion in June, driven by a record goods surplus as semiconductor exports surged, reinforcing confidence in the country's external position. Additionally, South Korea's foreign exchange reserves rose for a second consecutive month to $427.95 billion in July, supported by foreign exchange stabilization bond issuance and higher foreign currency deposits. The won also continued to benefit from foreign inflows linked to SK Hynix's ADR offering, with proceeds converted into won for domestic semiconductor investment. Meanwhile, uncertainty over the Strait of Hormuz reopening efforts remained a key external risk, with elevated oil prices weighing on broader market sentiment.

The South Korean won strengthened to around 1,425 per dollar, extending its July recovery, supported by strong foreign inflows and improving trade fundamentals. The currency continued to benefit from dollar inflows linked to SK Hynix's ADR offering, as proceeds from the transaction were converted into won for domestic semiconductor investment. Additionally, South Korea's external outlook improved, with July exports rising 62.9% year-on-year to $98.89 billion as semiconductor shipments surged 179%, lifting the trade surplus to $30.32 billion. This reinforced expectations for a recovery in growth amid robust chip demand. Meanwhile, renewed uncertainty over US-Iran negotiations kept geopolitical risks elevated and weighed on risk sentiment. Separately, softer-than-expected inflation eased concerns over domestic price pressures, though elevated core inflation limited expectations for a shift in the BOK's policy stance.