The South Korean won traded around 1,355 per dollar, reaching its strongest level since early July 2025 as expectations for another U.S. rate hike eased. Fed Governor Christopher Waller backed keeping rates steady if inflation continues to cool, prompting markets to cut the probability of a September hike to about 50% from 63%. The 10-year Treasury yield (interest rate on U.S. government debt) declined after reaching its highest level since November 2023, weakening support for the dollar. South Korea also reported a $42.08 billion current-account surplus (balance of external transactions) in July, its second-largest monthly surplus on record and the largest ever recorded for July, helped by resilient semiconductor-led goods exports. Renewed U.S. plans for targeted semiconductor tariffs tied to companies’ domestic production could nevertheless pressure the won because chip exports are important to South Korea’s trade balance.