South Korean Won Hits 2-Year High

2026-10-19 05:09 By Erika Ordonez 1 min. read

The South Korean won traded around 1,326 per dollar, extending gains to its strongest level since October 2024, as robust export receipts and exporter dollar sales continued to support the currency.

Exports surged 83.5% year-on-year to a record $120.94 billion in September, led by a 263% jump in semiconductor shipments, while the average daily trade surplus approached $2.5 billion, boosting dollar supply as exporters converted overseas earnings into won.

At the same time, the Bank of Korea is expected to hold its policy rate at 3.00% on October 22, while the prospect of a November hike could support the won by narrowing the interest-rate gap with the US.

Meanwhile, sustained foreign outflows from Korean equities amid AI-related concerns could limit further won gains.

Additionally, continued Middle East tensions and attacks on vessels in the Strait of Hormuz kept oil-supply risks elevated, potentially increasing South Korea's energy import costs and demand for dollars.



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South Korean Won Hits 2-Year High
The South Korean won traded around 1,326 per dollar, extending gains to its strongest level since October 2024, as robust export receipts and exporter dollar sales continued to support the currency. Exports surged 83.5% year-on-year to a record $120.94 billion in September, led by a 263% jump in semiconductor shipments, while the average daily trade surplus approached $2.5 billion, boosting dollar supply as exporters converted overseas earnings into won. At the same time, the Bank of Korea is expected to hold its policy rate at 3.00% on October 22, while the prospect of a November hike could support the won by narrowing the interest-rate gap with the US. Meanwhile, sustained foreign outflows from Korean equities amid AI-related concerns could limit further won gains. Additionally, continued Middle East tensions and attacks on vessels in the Strait of Hormuz kept oil-supply risks elevated, potentially increasing South Korea's energy import costs and demand for dollars.
2026-10-19
South Korean Won Strengthens Near 2-Year High
The South Korean won traded around 1,332 per dollar, recovering losses and approaching its strongest level since October 2024, as an easing semiconductor sell-off and renewed appetite for riskier assets lifted the currency. Foreign investors returned to net buying in South Korean equities, purchasing KRW 343.5 billion worth of shares after a prolonged tech-led rout, helping ease concerns over capital outflows. Additionally, Federal Reserve Chair Kevin Warsh's positive assessment of the US economy and AI-driven growth helped revive demand for riskier assets, while declines in US Treasury yields and the dollar offered further support to the won. However, Warsh gave no clear signal on a rate hike this month, while strong US data and inflation concerns reinforced bets on a December hike. Also, persistent AI valuation concerns, Chinese competition in memory chips, and elevated inflation risks remained potential headwinds for Korean markets.
2026-10-16
South Korean Won Extends Losses on Capital Outflows
The South Korean won traded around 1,343 per dollar, extending losses as foreign capital outflows and concerns over AI investments weighed on local markets. Foreign investors withdrew a net $19.97 billion from South Korean stocks and bonds in September, marking an eighth consecutive month of net outflows. The selling persisted into October, with foreign investors offloading KRW 3.6 trillion in local shares on Thursday amid heavy losses in Samsung Electronics and SK hynix, driven by concerns over AI valuations and Chinese competition in memory chips. Additionally, US producer prices rose 1.3% month-on-month in September, the largest increase since March 2022, while annual inflation accelerated to 6.3%, fueling concerns over persistent price pressures and potential Federal Reserve tightening. Meanwhile, a retreat in US Treasury yields and the dollar offered some external relief.
2026-10-16