The South Korean won traded around 1,346 per dollar, easing slightly but holding near a two-year low, as surging oil prices bolstered demand for the greenback. Brent crude rose above $107 per barrel amid escalating US–Iran tensions, stoking concerns over higher energy import costs. At the same time, the US 10-year Treasury yield approached 5% as markets increased bets on a Federal Reserve rate hike next week following stronger US producer inflation, keeping the dollar supported ahead of the US CPI release.
Domestically, South Korea’s inflation remained above the Bank of Korea’s target, with consumer prices rising 3.1% year-on-year in August. The central bank reiterated that the timing and pace of any further rate increases will depend on both domestic conditions and global developments. Meanwhile, exports surged 82.9% year-on-year in the first 10 days of September, driven by a 270% jump in semiconductor shipments, underscoring the continued strength of Korea’s external sector.
