The South Korean won traded around 1,345 per dollar, its strongest level since October 2024, supported by robust export performance. Cumulative exports have reached a record $709.4 billion so far this year, already exceeding the previous full-year high set in 2025. Semiconductor exports rose 169.6% in the January–August period, driven by strong global demand for AI-related chips.
Persistent foreign buying of Korean equities has further bolstered demand for the won, underscoring improved foreign appetite for Korean assets. At the same time, corporate dollar deposits at the country’s five major banks climbed to an all-time high of about $77 billion, as exporters accumulated foreign-currency earnings and delayed converting them into won.
The currency has appreciated by roughly 250 won from its July low, underscoring the sharpness of its recovery. However, the outlook for US monetary policy remains a drag: markets have increased the implied probability of a Federal Reserve rate hike in September to around 60%, up from roughly 50%, keeping Fed expectations a headwind for further won gains.
