South Korea Won Surges Against Dollar Amid Market Volatility

The South Korean won experienced a significant surge against the US dollar on July 29, reclaiming its 1,440 won defense line. This came despite the KOSPI index plummeting nearly 20% over two days and triggering circuit breakers repeatedly.

According to data from the Seoul foreign exchange market, the won closed at 1,446.7 won per dollar on July 29, a decline of 15.8 won from the previous trading day. The intraday low was 1,442.6 won, its lowest level since February.

Market analysts attributed this strength to large-scale dollar inflows from SK Hynix's American Depositary Receipt (ADR) issuance in the US being repatriated and converted into won. Major exporters like Samsung Electronics also concentrated their month-end dollar-selling settlements, further expanding the dollar supply in the market.