Korean Won Jumps 8.81% in July, Marking Strongest Monthly Gain Since 2009
Updated
Updated · 코리아타임스 · Aug 2
Korean Won Jumps 8.81% in July, Marking Strongest Monthly Gain Since 2009
3 articles · Updated · 코리아타임스 · Aug 2
Summary
The won finished July at 1,424 per dollar after rising 125.4 won from 1,549.4 at end-June, a sharp reversal from early-July weakness near 1,559.2.
SK hynix’s roughly 40 trillion won ($26.5 billion) ADR deal and stronger semiconductor exports boosted dollar supply as the chipmaker and exporters converted more overseas proceeds into won.
A 25-basis-point Bank of Korea rate hike to 2.75% on July 16 added support by narrowing the U.S.-Korea rate gap, while foreign net selling of KOSPI shares slowed to 17.1 trillion won in July.
Analysts say the won could strengthen further, potentially below 1,400 and even into the 1,300 range, if dollar supply stays firm, though renewed U.S. rate-hike bets and overseas equity buying could revive dollar demand.