The South Korean won traded at 1,388.1 per dollar at 9:07 a.m. on the 20th in Seoul, gaining 9.6 won from the previous day’s reference rate of 1,397.7. It had closed below 1,400 the previous day for the first time in about 10 and a half months and reached 1,385.2 during trading, its strongest level since 1,380.0 on September 18 of last year. After falling to around 1,560 per dollar on June 5 this year, the won has appreciated more than 10% in approximately 10 weeks. A large current account surplus, driven by semiconductor-led exports, has prompted companies to sell dollars from export proceeds more consistently rather than concentrating those transactions at month-end. The U.S. Treasury’s decision to double its long-term government bond buyback cap from $2 billion to a minimum of $4 billion per operation also pushed U.S. long-term yields lower and intensified dollar selling. The yen strengthened as well, while the euro was little changed against the dollar. Analysts at KB Kookmin Bank and Woori Bank said the won could test further declines in the 1,380 range and potentially reach the mid-1,300 range. The won’s strength may help restrain import prices and inflation but hurt export profitability, particularly for semiconductor and automobile companies. Future currency direction will depend heavily on Federal Reserve policy, U.S. fiscal management and Treasury debt operations.