The Korean won appreciated 9.4% against the U.S. dollar from the end of June to August 11, marking the strongest rise among major currencies tracked over that period. The Bank of Korea said the move was driven by softer expectations for U.S. tightening and improved supply-demand conditions in South Korea's foreign exchange market. The won-dollar exchange rate fell from 1,549.4 won at the end of June to 1,424.0 won at the end of July and 1,416.0 won by August 11. Even with the largest gain, the won also posted one of the highest levels of exchange-rate volatility, with its average daily move rising to 0.53% last month, second only to the Russian ruble's 0.55%. The report also showed continued foreign equity outflows, a reversal to net outflows in foreign bond investment in July, and persistent support for the won from semiconductor-related conversion demand and export settlement flows, even as yen weakness and Middle East risks limited further gains.