The won extended its recovery toward 1,430 per dollar as SK Hynix-related inflows, renewed foreign demand for Korean assets and a sharp export rebound improved support for the currency.
The Korean won extended its July recovery to around 1,430 per dollar, building on its strongest monthly performance in more than 15 years as stronger capital inflows and improving trade data bolstered sentiment. The USD/KRW exchange rate had already fallen 125.4 won in July to close at 1,424.0 won per dollar on July 31 from 1,549.4 won at the end of June, marking an 8.81% monthly gain for the won, the largest since March 2009. The currency’s rebound was supported by better dollar supply conditions, including inflows tied to SK Hynix's ADR offering that were converted into won for domestic semiconductor investment, as well as renewed foreign demand for Korean assets. South Korea’s external backdrop also improved. July exports surged 62.9% from a year earlier to $98.89 billion, led by a 179% jump in semiconductor shipments to $41 billion, lifting the trade surplus to $30.32 billion. The stronger trade performance reinforced expectations for a recovery in growth, while manufacturing sentiment improved as companies benefited from robust chip demand. Broader market conditions also helped. Oil prices fell after US President Donald Trump called off a planned strike on Iran, easing Middle East tensions and reducing pressure on import costs for an energy-dependent economy such as South Korea. Analysts remain divided on whether the won can sustain gains below 1,400 this year, but export momentum, foreign flows and any continued SK Hynix-related dollar conversion remain key factors to watch.