The South Korean won traded around 1,345 per dollar, nearing its strongest level since October 2024, as record exports and a sizable trade surplus fueled substantial dollar inflows. In September, exports surged 83.5% year-on-year to an all-time high of $120.9 billion, driven by a 262.8% increase in semiconductor shipments to $60.3 billion, while the trade surplus widened to a record $49.85 billion.
On the inflation front, consumer prices rose 2.9% year-on-year in September, and persistently elevated petroleum prices have limited the scope for near-term policy easing by the Bank of Korea. At the same time, US Treasury yields remained close to multi-decade highs, with the 10-year yield around 5.3% and the 30-year yield near 5.6%, keeping the dollar relatively firm at its highest level in more than a year.
Meanwhile, uncertainty around Korea’s trade and investment commitments with the United States has increased, amid disputes over the Alaska LNG project and broader tariff threats.
