2026.08.2103:33:44UTC+00South Korean Won Extends Gains to 11-Month High

The South Korean won appreciated toward 1,382 per dollar, extending its advance to the strongest level since mid-September 2025, supported by a weaker US dollar and solid domestic fundamentals. The dollar index hovered near multi-month lows as concerns over US fiscal deficits and the Treasury’s bond-buyback program pressured the greenback.

At the same time, Bank of Korea Senior Deputy Governor Kwon Min-soo said Korea’s economic fundamentals point to further potential appreciation of the won, citing stronger-than-expected growth and inflation running above the central bank’s target. Exports surged 56% year-on-year in the first 20 days of August, while semiconductor shipments nearly tripled to $26 billion, generating a $14 billion trade surplus and prompting exporters to sell dollars.

The robust data may reinforce expectations for another Bank of Korea rate hike at its August 27 meeting, following last month’s increase in the policy rate to 2.75%. Even so, a renewed rise in US Treasury yields and lingering geopolitical risks remain key headwinds for the currency.