Won Surges 8.81% Against Dollar in July Amid Improved Dollar Supply

The South Korean won has seen its biggest monthly appreciation since March 2009, rising by 8.81% against the dollar in July.

This significant increase was driven by improved dollar supply and demand conditions, as well as funds from SK Hynix's American depositary receipt (ADR) issuance, dollar selling by exporters, and market intervention by foreign-exchange authorities.

While some experts expect the exchange rate to fall below 1,400 won before year-end, others warn that a further increase in Federal Reserve interest rates could push the rate higher again.