2026.07.2902:42:45UTC+00South Korean Won Rises to Nearly 3-Month High

The South Korean won appreciated to about 1,451 per dollar in late July, its strongest level since early May, driven by expectations of tighter monetary policy and improving domestic fundamentals. The Bank of Korea reaffirmed that a restrictive policy stance remains necessary in light of persistent inflationary pressures, following its recent rate increase to 2.75%. The central bank also pointed to stronger exports and investment as key supports for sustained economic growth. Additional demand for the won came from SK hynix’s conversion of proceeds from its US listing into local currency, which helped offset selling of South Korean equities by foreign investors. However, the won’s gains were capped by lingering uncertainty over the Federal Reserve’s policy path, as markets continued to assess the likelihood of higher US interest rates. Ongoing volatility in the global semiconductor sector also remained a key driver of broader risk sentiment.