The South Korean won eased to around 1,415 per dollar, edging back from a recent ten-month high, as renewed uncertainty in the Strait of Hormuz weighed on the currency. Iran’s denial that it is holding direct talks with Washington on reopening the key waterway has clouded prospects for a near-term agreement and kept oil prices elevated, stoking concerns over higher import costs and inflation in South Korea.
Still, the won found support from robust semiconductor exports and continued dollar selling by local exporters. Overall exports in July jumped nearly 63% year-on-year to $98.89 billion, while semiconductor shipments soared 179%. Market participants also expect possible foreign exchange intervention by South Korean authorities, which is helping to cap renewed weakness in the won and keep it trading near its strongest level since October 2025.
At the same time, investors are closely watching this week’s US inflation data for further signals on the Federal Reserve’s policy path and the likely direction of the dollar.
