FX.co ★ South Korean Won Holds Near 8-Month Highs

The South Korean won remained steady at approximately 1,350 per dollar on Tuesday, maintaining levels close to an eight-month high. This stability is attributed to strengthening domestic fundamentals and a resurgence of investor interest in South Korean assets. June witnessed robust export figures, resulting in an expanded trade surplus, and equity markets experienced an upswing, with the KOSPI index reaching a multi-year peak, potentially drawing in foreign capital investments. The manufacturing sector showed signs of recovery, with the rate of contraction slowing in June. These positive domestic developments aligned with a weakening US dollar, as market participants anticipated more substantial rate cuts from the Federal Reserve, thus creating favorable conditions for the won.