Korean won trades near ₩1,420 as foreign stock inflows offset importer demand

The South Korean won hovered near ₩1,420 per dollar across the 13th and 14th in Seoul, closing at ₩1,419.4 on the 13th before strengthening modestly to ₩1,418.3 on the 14th. Support for the won came from foreign buying of South Korean equities, custodial dollar selling, exporter dollar sales and softer-than-expected U.S. inflation data, including July CPI in line with expectations and a weaker July PPI print. Gains were pared by importer settlement demand, bargain hunting, residents' overseas investment-related conversions and continued yen weakness. The KOSPI rose 3.56% to 6,813.34 on the 13th and 2.42% to 6,977.94 on the 14th, while foreign investors bought a net ₩2.11 trillion and ₩3.04 trillion, respectively. Market participants said the won-dollar rate remains range-bound, with support seen in the low ₩1,410 area, while KB Kookmin Bank's Moon Jung-hee cited a broader ₩1,382-₩1,436 range based on the 100-week and 200-week moving averages.

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