Won Surges Against Dollar Amid Higher Oil Prices and Strong Yen
The South Korean won strengthened against the US dollar on August 8, with the afternoon benchmark exchange rate rising to 1,345.6 won after a sharp increase of 5.1 won from the previous day's trading session.
The upward trend in the exchange rate was driven by higher oil prices, with the October delivery price of West Texas Intermediate (WTI) crude surpassing $94 per barrel for the first time since June 8, amid escalating tensions in the Middle East.
However, the Japanese yen showed strength against the dollar, which moderated the pace of the increase. The yen-dollar exchange rate briefly dropped to a low of 152.892 yen on August 8, its lowest level since February 17, before rebounding.
The strengthening South Korean won is also expected to boost per capita Gross National Income (GNI) in US dollar terms, which may exceed $40,000 for the first time this year if no unexpected shocks occur and the stable trend continues.