Key facts
- Currencies of South Korea and Taiwan are strengthening due to the AI and semiconductor boom.
- These currencies are outperforming those in countries focused on combating inflation with interest rate hikes.
- Manufacturers are recycling U.S. dollars into local currencies, boosting their value.
- South Korea's August exports saw a roughly 70% increase year-on-year due to memory demand.
- The trend is linked to strong exports of chips and AI components.
The currencies of South Korea and Taiwan are experiencing a significant strengthening, largely attributed to the ongoing artificial intelligence and semiconductor boom. This trend sees them outperforming currencies of nations prioritizing interest rate hikes to curb inflation.