South Korean Won Hits Near One-Year High on Strong Trade Data
The South Korean won has reached its highest value against the US dollar in nearly a year, reaching 1,376.50 per US dollar. The strengthening of the currency is due to two main factors: the weakening of the US dollar and strong trade data from South Korea.
The US dollar's decline can be attributed to investors focusing on the costs of higher bond yields and the US Treasury's plans to step up buybacks of longer-dated debt, according to Reuters. This has led to a decrease in demand for the greenback.
In contrast, South Korea's strong trade data is a major contributor to the won's rise. The country's chip exports have seen a 56% year-on-year increase in the first 20 days of August, with record semiconductor shipments and a significant trade surplus.