Summary
- The won climbed to its strongest level in 10 months.
- Dollar selling by domestic exporters and the won's more than 9% appreciation gave it the best performance among Asian currencies.
- Economist Min Kyung-won said he expects the won-dollar exchange rate to move in a range of 1,410 to 1,440 won per dollar for the time being.
Forecast Trend Report by Period
The South Korean won rose to its strongest level in about 10 months, lifted by an influx of dollar sales from exporters.
Bloomberg reported on August 6 that the won-dollar exchange rate fell to as low as 1,414.55 per dollar in intraday trading, its lowest level since October 2025. It later gave back part of the gain, but the won remained stronger on the day.
Min Kyung-won, an economist at Woori Bank, said demand to buy dollars emerges when the won-dollar rate falls to lower levels. Exporters' dollar sales, however, are overwhelming that demand.
The won has appreciated more than 9% against the dollar this quarter, the strongest gain among Asian currencies. It was the region's worst-performing currency in the first half after falling about 7%, but the trend has recently reversed.
Market participants say dollar sales by South Korean exporters, including SK Hynix, are driving the won's strength. SK Hynix has said it plans to use the $26.5 billion raised through a US listing for domestic investment.
South Korea's foreign-exchange authorities have also reportedly worked closely with US and Japanese officials during Japan's recent efforts to defend the yen. Reuters reported last week that South Korean authorities intervened in the foreign-exchange market by selling dollars to support the won.
Min said he expects the won-dollar exchange rate to trade in a range of 1,410 to 1,440 per dollar for the time being.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.