South Korean Won Tests 2024 High

The South Korean won traded around 1,338 per dollar, hovering near its strongest level since October 2024 amid steady dollar selling by semiconductor exporters. Thin holiday liquidity amplified corporate dollar supplies, pushing the rate toward the mid-to-high 1,330s. Robust September exports and a large trade surplus reinforced the won’s external backdrop, with exports surging 83.5% year-on-year to a record $120.9 billion, led by a 262.8% jump in semiconductor shipments, while the trade surplus expanded to a record $49.85 billion. Additionally, the dollar softened amid reduced expectations for near-term Fed tightening following softer US jobs and inflation data. Meanwhile, US Treasury yields remained elevated, with the 10-year yield around 5.28% after recently reaching its highest level since 2002, limiting the won’s gains.

The South Korean won traded around 1,340 per dollar, approaching its strongest level since October 2024, as record exports and a large trade surplus drove substantial dollar inflows. September exports surged 83.5% year-on-year to a record $120.9 billion, led by a 262.8% jump in semiconductor shipments to $60.3 billion, while the trade surplus widened to a record $49.85 billion. Additionally, consumer prices rose 2.9% year-on-year in September, and petroleum prices remained elevated, leaving limited room for near-term BOK easing. Meanwhile, US Treasury yields stayed near multi-decade highs, with the 10-year yield above 5.3% and the 30-year yield near 5.6%, keeping the dollar relatively firm at its highest level in over a year. At the same time, uncertainty surrounding Korea’s trade and investment commitments with the US has increased amid disagreements over Alaska LNG and broader tariff threats.

The South Korean won traded around 1,355 per dollar, remaining range-bound, supported by Korea’s robust export performance and strong semiconductor demand. September exports surged 83.5% year-on-year to a record $120.9 billion, while semiconductor exports jumped 263% to a record $60.3 billion, driving a record trade surplus of $49.85 billion. Strong export receipts lifted residents’ foreign-currency deposits to a record $140.62 billion in August. Authorities also stepped up measures to stabilize the domestic bond market amid the global sell-off. Meanwhile, higher US Treasury yields remained an offset, with the 10-year yield around 5.3% and the 30-year yield above 5.6%, both near multi-decade highs. Oil prices also climbed above $100 a barrel amid renewed tensions in the Middle East. At the same time, Korea’s CPI held at 2.9% in September, while the BOK warned inflation could stay around 3% in October, raising the prospect of another rate hike.