South Korean Won Rises to Over 1-Year High

2026-09-04 04:03 By Erika Ordonez 1 min. read

The South Korean won traded around 1,352 per dollar, extending gains to its strongest level since June 2025, as easing expectations for another US rate hike weakened the dollar and lowered Treasury yields.

Fed Governor Christopher Waller indicated support for keeping rates steady if inflation continues to cool, prompting markets to reduce the probability of a September hike to around 50% from 63% previously.

The 10-year Treasury yield fell after reaching its highest level since November 2023.

Additionally, South Korea posted a strong external balance, with the current account recording a $42.08 billion surplus in July, the second-largest monthly surplus on record and the largest ever recorded for July, with semiconductor-led goods exports remaining robust.

However, renewed US plans for targeted semiconductor tariffs linked to companies’ domestic production could weigh on the currency outlook, given the importance of chip exports to Korea’s trade balance.



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South Korean Won Rises to Over 1-Year High
The South Korean won traded around 1,352 per dollar, extending gains to its strongest level since June 2025, as easing expectations for another US rate hike weakened the dollar and lowered Treasury yields. Fed Governor Christopher Waller indicated support for keeping rates steady if inflation continues to cool, prompting markets to reduce the probability of a September hike to around 50% from 63% previously. The 10-year Treasury yield fell after reaching its highest level since November 2023. Additionally, South Korea posted a strong external balance, with the current account recording a $42.08 billion surplus in July, the second-largest monthly surplus on record and the largest ever recorded for July, with semiconductor-led goods exports remaining robust. However, renewed US plans for targeted semiconductor tariffs linked to companies’ domestic production could weigh on the currency outlook, given the importance of chip exports to Korea’s trade balance.
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South Korean Won Highest in Over a Year
The South Korean won traded around 1,357 per dollar, reaching its strongest level since early July 2025, as strong semiconductor exports boosted dollar inflows and encouraged exporter selling. South Korea’s exports jumped 68.7% year-on-year to $98.25 billion in August, while the trade surplus reached $34.75 billion. Semiconductor exports surged 209% to $46.65 billion on robust AI infrastructure demand, while month-end and custody-related flows provided additional support for the won. The currency also benefited from the Bank of Korea’s 3% policy rate and a stronger growth outlook. Additionally, easing concerns over a prolonged US-Iran conflict and lower oil prices reduced inflation and energy-cost pressures. Meanwhile, elevated US Treasury yields continued to limit further won appreciation, with the 10-year yield briefly reaching a three-year high. South Korea’s annual inflation rose to 3.1% in August from 2.8% in July.
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South Korean Won Hits 13-month High
The South Korean Won touched 1369.00 against the USD, the highest since July 2025. Over the past 4 weeks, US Dollar South Korean Won lost 4.23%, and in the last 12 months, it decreased 1.73%.
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