KRW Surges as South Korea, US, and Japan Coordinate Intervention

The South Korean Won (KRW) is currently the best-performing Asian currency, driven by strong demand for semiconductors and reported intervention coordination between Korea, the US, and Japan.

According to DBS Group Research, semiconductor demand remains robust despite volatility in Korean chip stocks. Physical memory demand continues to power prices to new highs, contributing to a 'terms-of-trade boom' for the Korean economy.

This boom is fueled by AI-related semiconductor needs, and KRW is just beginning to benefit from it. Interestingly, the Korean authorities reportedly coordinated with the US and Japan in FX market interventions to lift the KRW, although the scale and impact are not as significant as the Japanese yen (JPY) interventions.