Won holds near 1,357 as record exports support currency amid high US yields

  • The won traded near 1,357 per dollar as record exports supported the currency.
  • September exports rose 83.5% to $120.9 billion, producing a $49.85 billion trade surplus.
  • The Bank of Korea said inflation could remain around 3% in October.

The South Korean won traded near 1,357 per dollar, remaining within its recent range as strong semiconductor demand and record export receipts supported the currency against pressure from elevated US Treasury yields. September exports rose 83.5% from a year earlier to a record $120.9 billion, led by a 263% jump in semiconductor exports to $60.3 billion, producing a record $49.85 billion trade surplus. Foreign-currency deposits held by residents reached a record $140.62 billion in August, reflecting stronger export-related dollar inflows. Authorities also intensified measures to stabilize the domestic bond market during the global sell-off. Higher US borrowing costs remained a constraint, with the 10-year Treasury yield near 5.3% and the 30-year yield above 5.6%, both near multi-decade highs. Oil prices above $100 a barrel amid renewed Middle East tensions and Korean inflation holding at 2.9% in September added to the cautious outlook. The Bank of Korea warned inflation could remain around 3% in October, raising prospects of another rate increase.

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