Key facts
- The South Korean won reached its highest level against the U.S. dollar in nearly 14 months.
- The won traded at 1,359.3 won per dollar, marking its first time above 1,360 since July 3 of the previous year.
- The currency's appreciation was driven by the strengthening Japanese yen.
- Market sentiment suggested potential intervention by Japanese financial authorities to support the yen.
- Exporters sold U.S. dollars as the currency remained weak ahead of a U.S. employment report.
The South Korean won appreciated to a near 14-month high against the U.S. dollar on Thursday, trading at 1,359.3 won per dollar. This marks the first time the won has strengthened past the 1,360 won per dollar level since July 3 of the previous year. The currency reached an intraday high of 1,355.9 won per dollar during morning trading.
The won's advance was largely attributed to the strengthening Japanese yen, which reached its highest level since August 7. Market participants anticipated that Japan's financial authorities might intervene to support the yen, a move that would typically weaken the dollar. Additionally, local exporters were observed selling U.S. dollars as the dollar remained weak in anticipation of a key U.S. employment report.