31.08.202604:31:17UTC+00South Korean Won Hits 13-Month High

The South Korean won traded around 1,374 per dollar, its strongest level since July 2025, supported by continued dollar selling from major exporters. Month-end flows and robust, semiconductor-driven export growth underscored a favorable trade environment, with August shipments projected to increase more than 60% year-on-year and the trade surplus expected to top $30 billion. The currency also drew support from the Bank of Korea’s consecutive interest rate hikes, which lifted the policy rate to 3%, and from the central bank’s upgraded 2026 growth forecast of 3.3%, reflecting stronger semiconductor exports and firm domestic demand. As a result, the won has appreciated roughly 5% against the dollar in August. However, hawkish remarks from Federal Reserve Chair Kevin Warsh bolstered expectations of a September US rate hike, lending support to the dollar and US Treasury yields. At the same time, renewed US-Iran tensions drove oil prices higher, heightening inflation and risk concerns.