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.
- The currency's appreciation was driven by the strengthening Japanese yen.
- Market participants anticipated potential intervention by Japanese financial authorities.
- Local exporters sold U.S. dollars.
- SK Hynix's U.S. listing and repatriation of corporate funds supported the won.
The South Korean won appreciated to a near 14-month high against the U.S. dollar, 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. SK Hynix's listing in the U.S. and South Korean efforts to encourage exporters to repatriate funds also contributed to the currency's strength.