The South Korean won traded around 1,358 per dollar, extending gains from the previous session as solid earnings prospects for Korean chipmakers continued to support the currency. Major semiconductor manufacturers are expected to post strong third-quarter results on the back of robust global chip demand, bolstering the outlook for export revenues and foreign-currency inflows.
At the same time, the Ministry of Economy and Finance and the Bank of Korea agreed to strengthen cooperation on financial market monitoring and policy responses, aiming for a more coordinated mix of fiscal and monetary measures.
Meanwhile, the rise in US Treasury yields during the Chuseok holiday stoked concerns over a widening interest-rate differential and the possibility of further Federal Reserve rate hikes. In addition, Brent crude climbed above $105 per barrel amid uncertainty surrounding the Strait of Hormuz, pushing up Korea’s import costs and heightening inflation risks.
