The South Korean won strengthened to around 1,351 per dollar as falling oil prices eased inflation concerns and reduced demand for the US currency. US President Donald Trump described a meeting between US and Iranian representatives as very good, raising hopes for a diplomatic breakthrough; oil prices then declined for a sixth consecutive session. South Korea’s export momentum also supported the won, with exports surging 78% year-on-year during the first 20 days of September. Semiconductor exports rose 259%, increasing dollar inflows from trade. The Asian Development Bank raised its 2026 growth forecast for South Korea to 3.2% from 2.6%, citing strong exports and corporate earnings linked to the AI boom. The dollar nonetheless remained relatively firm as hawkish Federal Reserve comments left markets pricing about a 54% chance of another interest-rate increase in October.