Won Strengthens Amid Dollar Inflows After SK Hynix ADR Offering

The Korean won has experienced its biggest monthly gain since 2009, driven largely by a surge in U.S. dollar inflows into the country's foreign exchange market following SK hynix Inc.'s American depositary receipt (ADR) offering on the Nasdaq.

According to foreign exchange data, the won was quoted at 1,424 per U.S. dollar at 3:30 p.m. Friday, up 125.4 won from the end of June. This monthly gain is the largest since March 2009, when the won strengthened by 150.5 won against the U.S. dollar in the aftermath of the global financial crisis.

The currency has rebounded steadily after falling to a more than 17-year low of 1,599.2 won per dollar on July 1.

Economists expect the won to remain on an upward trajectory, citing stronger-than-expected economic growth and expectations that the Bank of Korea (BOK) will continue raising interest rates, narrowing the rate differential with the United States.