Key facts
- Won strengthened against the dollar due to robust exports and increased dollar supply.
- Average won-dollar exchange rate was 1,342.6 in early October, lowest since September 2024.
- South Korea's trade surplus and ample dollar supply supported the won's appreciation.
- IMF raised South Korea's 2026 growth forecast to 3.3% on strong semiconductor exports.
- Bank of Korea lifted its benchmark interest rate to 3% through consecutive hikes.
The South Korean won has strengthened against the U.S. dollar, driven by robust exports and an increased dollar supply, according to data from the Bank of Korea. The won traded at an average of 1,342.6 won per dollar in the first 12 trading days of October, the lowest since September 2024. This appreciation follows a period of weakening, with the monthly average exchange rate reaching highs in March and June amid Middle East conflict and rising crude oil prices. Exporters selling dollars and a narrowing gap between the trade surplus and foreign stock selling have supported the won. Experts attribute the won's strength to South Korea's solid economic growth, the central bank's monetary tightening, and a semiconductor boom.