South Korean Won Hits 24-month High

The South Korean won traded around 1,324 per dollar, extending gains to its strongest level since October 2024, as month-end dollar selling by exporters and offshore investors increased greenback supply. Recent remarks by Bank of Korea Governor Shin Hyun-song highlighting strong export-driven dollar inflows and the won’s undervaluation also reinforced expectations for further currency gains. Meanwhile, South Korea’s GDP expanded 1% quarter-on-quarter in the third quarter, accelerating from 0.6% in the previous quarter and exceeding market expectations of 0.8%, providing additional fundamental support. However, elevated oil prices amid continued Middle East tensions remain a risk, as higher energy import costs could increase demand for dollars. Investors also awaited the Federal Reserve’s policy decision on October 27–28 for further clues on the US interest rate outlook.

The South Korean Won touched 1320.00 against the USD, the highest since October 2024. Over the past 4 weeks, US Dollar South Korean Won lost 2.86%, and in the last 12 months, it decreased 7.63%.

The South Korean won traded around 1,321 per dollar, extending gains to its strongest level since October 2024, as Korea’s semiconductor-led export boom continued to underpin foreign-currency inflows. Exports reached a record $120.94 billion in September, up 83.5% year-on-year, driven by a 263% surge in semiconductor shipments. Preliminary data also showed chip exports maintaining strong growth in October. At the same time, the Bank of Korea expects the full-year current-account surplus to exceed its previous $450 billion forecast, reinforcing the outlook for sustained external inflows. Additionally, the BOK indicated that economic growth in 2026 is expected to exceed its previous projections, providing a more favorable economic backdrop for the currency, while keeping its policy rate unchanged at 3.00%. Meanwhile, elevated oil prices amid continued Middle East tensions remain a risk, as higher energy import costs could increase demand for dollars.