19.10.202605:09:39UTC+00South Korean Won Extends Gains Near 2-Year High

The South Korean won traded around 1,329 per dollar, extending gains toward its strongest level since October 2024, supported by robust exports and steady dollar selling by exporters. Exports surged 83.5% year-on-year in September to a record $120.94 billion, driven by a 263% jump in semiconductor shipments, while the average daily trade surplus neared $2.5 billion.

US Treasury yields retreated to near four-week lows after Federal Reserve Chair Kevin Warsh avoided giving a clear signal on the outcome of this month’s policy meeting, with markets now pricing in roughly an 84% probability that interest rates will be kept on hold.

At the same time, foreign investors were net sellers of KOSPI equities, unloading KRW 11.21 trillion worth of shares last week amid concerns over AI-related investments and intensifying Chinese competition in memory chips, heightening the risk of further capital outflows. Adding to the uncertainty, rising tensions in the Middle East and attacks on commercial vessels in the Strait of Hormuz have increased the perceived risk of disruptions to global oil supplies.