South Korean Won Nears Two-Year High

2026-09-07 03:24 By Erika Ordonez 1 min. read

The South Korean won traded at around 1,345 per dollar, reaching its strongest level since October 2024, as strong export earnings supported the currency.

South Korea’s cumulative exports reached a record $709.4 billion so far this year, already surpassing the 2025 annual record, with semiconductor exports rising 169.6% in January-August amid strong demand for AI-related chips.

Continued foreign investment in Korean equities also supported demand for the won, reflecting stronger foreign appetite for Korean assets.

At the same time, corporate dollar deposits at the country’s five major banks climbed to a record of roughly $77 billion as exporters accumulated foreign-currency proceeds and delayed converting them into won.

The won has strengthened by roughly 250 won from its July low, highlighting the currency’s sharp recovery.

Meanwhile, markets raised the probability of a September Fed rate hike to around 60% from roughly 50%, keeping the Fed outlook a headwind for the won.



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South Korean Won Nears Two-Year High
The South Korean won traded at around 1,345 per dollar, reaching its strongest level since October 2024, as strong export earnings supported the currency. South Korea’s cumulative exports reached a record $709.4 billion so far this year, already surpassing the 2025 annual record, with semiconductor exports rising 169.6% in January-August amid strong demand for AI-related chips. Continued foreign investment in Korean equities also supported demand for the won, reflecting stronger foreign appetite for Korean assets. At the same time, corporate dollar deposits at the country’s five major banks climbed to a record of roughly $77 billion as exporters accumulated foreign-currency proceeds and delayed converting them into won. The won has strengthened by roughly 250 won from its July low, highlighting the currency’s sharp recovery. Meanwhile, markets raised the probability of a September Fed rate hike to around 60% from roughly 50%, keeping the Fed outlook a headwind for the won.
2026-09-07
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.
2026-09-04
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.
2026-09-01