Foreign investors have returned to South Korea's KOSPI market as the won-dollar exchange rate fell to its lowest level in 11 months. They recorded net purchases for three consecutive trading sessions and bought approximately 4.7 trillion won ($3.5 billion) of shares during that period, while monthly net buying has exceeded 1.6 trillion won ($1.2 billion). The shift follows net sales of 8.6313 trillion won ($6.4 billion) in July and 9.8895 trillion won ($7.4 billion) in August, totaling about 18 trillion won ($13.4 billion), as the KOSPI fell from the 8,400 level to the 6,800 range. A stronger won can give overseas investors both equity gains and currency gains, although analysts say the trend may not become a sustained "Buy Korea" cycle. Rising oil prices and U.S. Treasury yields, the ongoing U.S.-Iran conflict, stronger-than-expected U.S. August employment data and the possibility of a September Federal Open Market Committee (FOMC) rate hike could continue to affect flows. The U.S. August Consumer Price Index (CPI), due on the 11th, is viewed as a key indicator for the Fed's September decision. Analysts also warn that excessive won strength could reduce the won-denominated earnings of export-oriented companies.