South Korean Won Surges to 14-Month High Against Dollar

The South Korean won has reached a fresh 14-month high against the US dollar, with traders pointing to a strong gain of the Japanese yen as a contributing factor. The won was quoted at 1,350.4 per dollar at 3:30 pm local time on Friday, marking its strongest level since June 30 last year. This surge in value comes after local exporters cut their dollar holdings and SK hynix Inc. converted its proceeds from a US listing into the Korean currency.

Traders also considered expectations of Japanese financial authorities intervening to support the yen, which had strengthened unexpectedly this week. Foreigners purchased a net 479.3 billion won worth of local stocks during the latest trading session, with the benchmark Korea Composite Stock Price Index gaining 1.64 percent to close at 6,687.21.

South Korean stocks rose for a second consecutive day on Friday, finishing nearly 2 percent higher due to strong export figures and eased concerns over US interest rate hikes. Analyst Lee Kyoung-min from Daishin Securities noted that rate hike concerns were alleviated by comments from Federal Reserve Gov. Christopher Waller.