Business · Markets · 1 hr ago
South Korean won reaches its strongest level in 25 months
The South Korean won has reached its strongest level in 25 months against the US dollar, despite a recent stock-market downturn.
Its average rate this month was 1,342.6 won per dollar, the strongest since September 2024.
Strong semiconductor exports have brought more dollars into South Korea, as exporters exchange overseas earnings for won.
A trade surplus and improved growth expectations have also helped support the currency.
But investor caution could weaken the won if foreign investors keep selling South Korean shares and demand more dollars.
The Bank of Korea is due to meet on October 22, and markets expect it to hold rates; a firm signal that further rate rises remain possible could support the won.
People are also putting more money into foreign-currency deposits, with personal dollar deposits at five major banks reaching $14.23 billion on October 15, their highest level since December 2021.
The South Korean won reached its strongest level in 25 months, supported by robust semiconductor exports.
The won’s average value this month was 1,342.6 per US dollar, its highest since September 2024.
A trade surplus and a narrowing interest-rate gap with the United States also supported the currency.
Stock-market volatility and weaker appetite for risk were potential pressures on the won.
- Who
- The South Korean won and South Korean currency markets.
- What
- The won reached its strongest level in 25 months, supported by exports and other factors.
- When
- The average exchange rate was reported on October 19, 2026; trading on October 19 was around 1,335 won per US dollar.
- Where
- South Korea.
- Why
- Strong semiconductor exports increased the supply of dollars in the domestic market. A narrower interest-rate gap with the United States and improved growth prospects also supported the won.
This story does not have two clearly opposing sides.
The won’s value fell to 1,528 per US dollar.
The won’s value averaged 1,488.9 per US dollar.
The won’s value averaged 1,404.4 per US dollar.
The won’s value averaged 1,358.8 per US dollar.
The central bank reported that the won averaged 1,342.6 per US dollar during the month’s first 12 trading days.
- Monthly average
- 1,342.6 won per US dollar in October through the first 12 trading days
- Previous peak comparison
- Highest average since September 2024, when it was 1,332.8 won per US dollar
- Trade surplus
- Nearly $2.5 billion per day on average in September
- October 19 trading
- Around 1,335 won per US dollar at 9 a.m.
- Foreign currency deposits
- Personal dollar deposits at five major banks totaled $14.23 billion as of October 15
What people are saying
Recent doubts about the sustainability of artificial intelligence investment have sharply worsened global sentiment toward semiconductor investment
If foreign investors continue net selling domestic semiconductor stocks and other shares, dollar-buying demand from capital outflows could increase downward pressure on the won
This meeting is likely to keep the policy rate unchanged, but judging from the central bank governor’s recent remarks, it seems likely to be a hawkish hold that signals the possibility of further tightening