Won Posts Strongest Monthly Gain Since 2009 on Improved Dollar Supply

The Korean won has posted its strongest monthly gain against the US dollar since March 2009, reaching 1,424.0 per dollar at the end of July.

This marked an improvement of 125.4 won from June's close and a significant turnaround from just weeks earlier when markets were bracing for a weakening currency.

The rebound was driven by improving dollar supply, with major exporters like SK hynix converting part of their ADR proceeds into won, as well as a reduction in foreign selling of Korean equities.

Analysts point to the narrowing interest rate gap between Korea and the US as a key factor in the won's strength, which could continue if conditions remain favorable.