Won Surges 9.4%, Yen Loses Gains Amid Coordinated Intervention

The Korean won has experienced its largest gain among major currencies in recent times, appreciating by 9.4% against the US dollar from late June to August 11.

This significant appreciation is attributed to waning expectations for US Federal Reserve rate hikes and improved supply-demand conditions in South Korea's foreign-exchange market.

However, despite its strength, the won's exchange-rate volatility has also increased, ranking second-highest among major currencies, behind only the Russian ruble.

The Japanese yen, on the other hand, has surrendered much of its gains following coordinated intervention by Japan and the US in July. The dollar-yen rate has rebounded over 1% in August, retracing much of its pre-intervention levels.