Traditional exchange-rate relationships have weakened as the dollar and won recently strengthened simultaneously and the won-yen relationship lost synchronization. The immediate driver was domestic companies selling dollars: SK Hynix began releasing $26.5 billion raised through its American Depositary Receipts (ADR, U.S.-traded shares representing a foreign company) listing on July 15, alongside dollar sales by other companies. After remaining above 1,500 won for 49 consecutive trading days from May 19 through July 14 and reaching 1,554.4 won on July 2, the won-dollar rate fell to about 1,490 won on July 15 and closed the week at 1,370.4 won. The ADR effect is expected to end by September, leaving the currency outlook dependent on whether companies continue selling dollars or instead retain them amid weaker exports. Planned shareholder returns by SK Hynix and Samsung Electronics could require additional dollar conversions, potentially extending the selling pressure. U.S. monetary policy is another key variable: a rate increase would widen the Korea-U.S. interest-rate gap and could lift the won-dollar rate. The probability of a Federal Reserve hike in September rose to 62.4% on the 31st of last month from 41.4% a week earlier, according to CME FedWatch. Meanwhile, the yen remains weak as Japan’s debt reaches record levels and expansionary fiscal policy threatens further deficits. South Korea’s strong semiconductor exports and potential foreign-capital inflows could provide additional support for the won.