Korean Won Holds Firm Against US Interest Rate Surge

The Korean won has shown resilience against high interest rates in the US, trading at around 1,360 won per dollar since the Chuseok holiday. Market watchers attribute this stability to the ongoing semiconductor boom, which is driving exports and supporting the currency.

Despite rising U.S. Treasury yields, exceeding 5.2% for the 10-year interest rate and 5.5% for the 30-year rate, the won has remained relatively stable. The dollar index, which tracks the value of the dollar against six major currencies, has also risen above 101.2.

Experts point to the semiconductor boom as a key factor in the won's strength. Baek Seok-hyun, an economist at Shinhan Bank, notes that domestic exporters' sales have been flowing in steadily due to the boom, supporting the lower won. Additionally, while oil prices have risen, the controversy surrounding diesel oil exports has offset some of the negative effects on South Korea.

However, not everyone is optimistic about the won's future. Lee Yoo-jung, a researcher at Hana Bank, warns that high interest rates in the US are a major variable that can put downward pressure on the won. She notes that the factors driving this rise in interest rates are difficult to resolve in the short term.