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KRWUSD

South Korean Won Hits 13-Month High

The South Korean won traded around 1,374 per dollar, reaching its strongest level since July 2025, amid continued dollar selling by major exporters. Month-end flows and strong semiconductor-led export growth highlighted a favorable trade backdrop, with August shipments forecast to rise more than 60% year-on-year and the trade surplus expected to exceed $30 billion. The won also benefited from the Bank of Korea’s back-to-back rate hikes, which lifted its policy rate to 3%, while the central bank raised its 2026 growth forecast to 3.3% on stronger semiconductor exports and domestic demand. The won has gained roughly 5% against the dollar in August. However, hawkish comments from Federal Reserve Chair Kevin Warsh reinforced expectations for a September rate hike, supporting the dollar and US Treasury yields. At the same time, renewed US-Iran tensions pushed oil prices higher, adding to inflation and risk concerns.

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