Won Soars on SK Hynix Listing and Economic Fundamentals
The South Korean won surged to its highest level in two years against the Japanese yen, reaching ₩895.44 per ¥100, as the currency conversion demand from SK Hynix's $40 billion listing and solid economic fundamentals fueled the won's rapid appreciation.
Despite a second straight day of declines, the won/dollar rate closed at ₩1,466.6, down ₩0.2 from the previous session, following a ₩13.3 plunge the day before.
The won's strength was attributed to the overwhelming dollar supply, which overwhelmed dollar-supportive pressures intensified overnight by international oil prices surging after an attack on a Saudi Arabian oil tanker in the Red Sea.
South Korea's GDP growth also underpinned the won's resilience, coming in at 0.6% quarter-on-quarter, exceeding market expectations and the Bank of Korea's forecast of 0.2%.