Key facts
- The South Korean won strengthened to a near two-year high against the U.S. dollar.
- The won was quoted at 1,340.5 won per dollar.
- SK hynix converted proceeds from a U.S. listing into the Korean currency.
- The National Pension Service halted its foreign exchange hedging operations.
- Foreigners purchased 2.5 trillion won (US$1.86 billion) in local stocks.
The South Korean won reached a near two-year high against the U.S. dollar on Monday, driven by local exporters converting their dollar holdings into the local currency. The won was quoted at 1,340.5 won per dollar at 3:30 p.m., marking a gain of 9.9 won from the previous session's close. At one point in morning trading, the won advanced to 1,334.7 per dollar, its strongest level since October 4, 2024.
The won's recent rebound has been supported by local exporters reducing their dollar holdings and SK hynix converting proceeds from a significant U.S. listing into the Korean currency. Despite increased expectations of a U.S. rate hike following better-than-expected jobs data, the won strengthened. However, it pared some gains after reports indicated that the state-run National Pension Service, a major global pension fund, had ceased its foreign exchange hedging operations.
In parallel, foreign investors purchased a net 2.5 trillion won (US$1.86 billion) worth of local stocks during the trading session. This influx of foreign capital coincided with a significant rise in the benchmark Korea Composite Stock Price Index, which closed up 4.61 percent at 6,995.39.