Korean won strengthens on Fed pause, improving dollar supply, and foreign stock buying

The South Korean won rose to the strongest level in almost 10 months as exporters converted their dollar earnings into the local currency.

The Korean won posted its strongest monthly gain against the U.S. dollar last month since March 2009, fueling optimism that the currency could strengthen below 1,400 won per dollar. This marks a sharp reversal from just weeks earlier when markets were bracing for the currency to weaken toward the 1,600 won-per-dollar level. Analysts said Sunday that the rebound was fueled by an improving dollar supply, as SK hynix converted part of the proceeds from its American depositary receipt (ADR) Nasdaq offering into won, while exporters stepped up dollar sales. In the Seoul foreign exchange market, the won ended onshore trading at 1,424.0 per dollar on Friday, the last trading day of July. The currency strengthened by 125.4 won against the dollar in July, an improvement from its June 30 close of 1,549.4 won, gaining 8.81 percent against the dollar. This marks its strongest monthly performance since March 2009, when the won strengthened by 150.5 won against the dollar during heightened volatility from the global financial crisis. The won weakened to as low as 1,559.2 per dollar on July 1, briefly

The Korean won appreciated at its fastest monthly pace since 2009, driven largely by a surge in U.S. dollar inflows into the country's foreign exchange market following SK hynix Inc.'s American depositary receipt (ADR) offering on the Nasdaq, industry data showed Sunday. The won was quoted at 1,424 per U.S. dollar at 3:30 p.m. Friday, up 125.4 won from the end of June, according to foreign exchange data. The monthly gain was the largest since March 2009, when the won strengthened by 150.5 won against the U.S. dollar in the aftermath of the global financial crisis. The currency has rebounded steadily after falling to a more than 17-year low of 1,599.2 won per dollar in intraday trading on July 1. On a weekly basis, the won gained 42.6 won against the dollar in the final week of July, marking its strongest weekly performance since the second week of November 2022. Among major currencies, the won posted the strongest gain against the U.S. dollar last month. According to separate data compiled by Yonhap Infomax, the won appreciated 7.95 percent against the dollar in July from a month earlier,

The Korean won sharply strengthened against the U.S. dollar Friday, buoyed by net purchases by foreign investors in local stocks after hitting a nine-month high on suspected market-smoothing operations. The won was quoted at 1,424 won per dollar at 3:30 p.m., up 13.4 won from the day before. The won was traded at 1,418 won per dollar as of around 6 a.m., marking the strongest level since Oct. 20 last year. Overnight, the won had advanced to as high as 1,419 won per dollar, with traders speculating that authorities conducted market-smoothing operations. Foreigners bought a net 7 trillion won ($4.9 billion) worth of local stocks during the latest trading session, with the benchmark Korea Composite Stock Price Index skyrocketing 17.91 percent to close at 6,595.45. The won's appreciation was in line with a gain in the Japanese currency. At one point in overnight New York trading, the yen rose to about 158 per dollar, hitting the strongest level in more than two years. Moon Ji-sung, deputy finance minister for international affairs, told Yonhap News Agency that Korea and Japan have maintained cl

The Korean won strengthened to a nine-month high against the U.S. dollar Friday, after suspected market-smoothing operations by the nation's foreign exchange authorities. The won was quoted at 1,418 won per dollar as of around 6 a.m., marking the strongest level since Oct. 20 last year. The won had advanced to as high as 1,419 won per dollar Thursday night (Seoul time) but pared gains and traded at the 1,430-won level as of 9:37 a.m. The won's appreciation was in line with a gain in the Japanese currency. At one point in New York trading, the yen rose to about 158 per dollar, hitting the strongest level in more than two years. Lee Min-hyuk, an analyst at KB Kookmin Bank, said the correlation between the won and yen raised speculation that both Korean and Japanese foreign exchange authorities might have intervened in the markets. The overnight strength of the won and the yen "could suggest the authorities in Korea and Japan may have intervened together," Lee speculated.

The Korean won strengthened to a fresh five-month high against the U.S. dollar Thursday, after the U.S. Federal Reserve held its benchmark interest rate steady. The won was quoted at 1,437.4 won per dollar at 3:30 p.m., up 9.3 won from the day before, marking the strongest level since Feb. 26. The won gained after the Federal Reserve left the rate unchanged at the 3.5-3.75 percent range, marking the fifth consecutive pause. However, three Fed policymakers dissented and called for a hike, raising speculation that a rate hike can occur down the road. The won's strength was also supported by foreign investors' net purchase of local stocks. Foreigners bought a net 1.3 trillion won ($900 million) worth of local stocks during the latest trading session, while the benchmark Korea Composite Stock Price Index fell 1.23 percent to close at 5,593.56.