2026.07.1403:04:12UTC+00South Korean Won Nears 2-Month High

The South Korean won strengthened to around 1,490 per dollar, extending its advance toward the highest level since mid-May as markets increasingly priced in a Bank of Korea interest rate hike later this week. Persistent inflation, solid economic growth, and elevated household debt have all reinforced expectations of the central bank’s first rate increase in more than three years, lending support to the currency.

The won also benefited from expectations of fresh foreign exchange inflows. SK Hynix is projected to convert part of the proceeds from its $26.5 billion US listing into won to fund domestic investments, a move that would boost dollar supply in the local FX market.

At the same time, investor sentiment remained cautious amid rising tensions in the Middle East. The US reinstated a blockade of Iranian ports, and President Donald Trump announced a 20% levy on cargo transiting the Strait of Hormuz, heightening concerns over increased energy costs. Those worries pushed oil prices higher and underpinned demand for the US dollar.