South Korean Won Extends Gains to 11-Month High

2026-08-21 03:33 By Erika Ordonez 1 min. read

The South Korean won traded toward 1,382 per dollar, extending gains to its strongest level since mid-September 2025, as a weaker US dollar and strong domestic fundamentals supported the currency.

The dollar index remained near multi-month lows as concerns over US fiscal deficits and the Treasury's bond-buyback efforts weighed on the greenback.

At the same time, Bank of Korea Senior Deputy Governor Kwon Min-soo said economic fundamentals suggest the won could strengthen further, noting stronger-than-expected growth and inflation above target.

Exports jumped 56% year-on-year in the first 20 days of August, while semiconductor shipments nearly tripled to $26 billion, generating a $14 billion trade surplus and supporting exporter dollar-selling.

The strong data could bolster expectations for another BOK rate hike on August 27, after the central bank raised its policy rate to 2.75% last month.

However, renewed gains in US Treasury yields and geopolitical risks remained potential headwinds.



News Stream
South Korean Won Extends Gains to 11-Month High
The South Korean won traded toward 1,382 per dollar, extending gains to its strongest level since mid-September 2025, as a weaker US dollar and strong domestic fundamentals supported the currency. The dollar index remained near multi-month lows as concerns over US fiscal deficits and the Treasury's bond-buyback efforts weighed on the greenback. At the same time, Bank of Korea Senior Deputy Governor Kwon Min-soo said economic fundamentals suggest the won could strengthen further, noting stronger-than-expected growth and inflation above target. Exports jumped 56% year-on-year in the first 20 days of August, while semiconductor shipments nearly tripled to $26 billion, generating a $14 billion trade surplus and supporting exporter dollar-selling. The strong data could bolster expectations for another BOK rate hike on August 27, after the central bank raised its policy rate to 2.75% last month. However, renewed gains in US Treasury yields and geopolitical risks remained potential headwinds.
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South Korean Won Hits 48-week High
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South Korean Won Hits 11-Month High
The South Korean won traded around 1,385 per dollar, reaching its strongest level since late September 2025, as a softer US dollar supported demand for the local currency. The dollar index remained near multi-month lows as Treasury yields eased from recent highs, while investors scaled back expectations for further Fed rate hikes following softer US economic data, narrowing the dollar's yield advantage. Additionally, persistent dollar-selling flows from Korean exporters continued to support the won amid strong semiconductor-related export receipts. The conversion of SK hynix's ADR proceeds into won has also been a key factor behind the currency's sharp appreciation in recent weeks, boosting domestic dollar supply. Meanwhile, higher oil prices near three-week highs and renewed US-Iran tensions could pose a headwind for the won, as the lack of progress in peace efforts raises concerns over potential disruptions to Middle Eastern oil supplies and higher import costs for South Korea.
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