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23.09.202604:49:55UTC+00South Korean Won Strengthens Further

The South Korean won advanced to around 1,351 per dollar, extending its sharp rebound as oil prices continued to decline. Market sentiment improved after US President Donald Trump described talks between US and Iranian representatives as “very good,” raising hopes for a diplomatic breakthrough. Oil prices subsequently fell for a sixth consecutive session, easing inflation concerns and dampening demand for the dollar.

Robust export performance also supported the won. South Korea’s exports surged 78% year-on-year in the first 20 days of September, propelled by a 259% jump in semiconductor shipments, which bolstered dollar inflows. At the same time, the Asian Development Bank raised its 2026 growth forecast for South Korea to 3.2% from 2.6%, citing strong exports and solid corporate earnings driven by the AI boom.

However, the dollar remained relatively firm overall, as hawkish comments from Federal Reserve officials kept markets pricing in roughly a 54% probability of another rate hike in October.

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