The South Korean won firmed to around 1,500 per dollar, recovering after briefly touching its weakest level since March 2009 near 1,520 on May 22. The rebound was supported by improved risk appetite, as a global, AI-driven semiconductor rally boosted demand for Korean assets.
Robust gains in technology stocks pushed the KOSPI to a new record high, drawing additional inflows into the won and bolstering sentiment toward export-oriented assets. Expectations that the Bank of Korea will maintain a hawkish stance at this week’s policy meeting also supported the currency, against a backdrop of persistent inflation pressures and resilient economic growth.
In addition, a state-run think tank raised South Korea’s 2026 growth forecast to 2.5%, citing strong semiconductor exports and increasing AI-related investment. However, the won’s advance remained constrained as investors closely monitored developments in the Middle East, with renewed US military action against Iran sustaining concerns over oil prices and the risk of imported inflation.
