Korean Won Reaches New High on Oil Price Surge and US Bond Yield Rise

The South Korean won rose against the US dollar this week, closing at its highest level since September 4. The exchange rate finished weekly transactions at 1,359.4 won on Friday, up 12.1 won (0.89%) from the prior week's close.

International factors pushed the won higher, as oil prices surged and US government bond yields rose. Brent crude futures hit $105.68 a barrel, a 1.02% increase from the previous session, while the 10-year US Government Bond yield reached its highest level in about three years at 5.01% intraday.

Foreign investors' net selling of Korean stocks also contributed to the won's strength, as they converted their proceeds into dollars and put upward pressure on the exchange rate.