Won Surges by 125 Won against USD Amid SK hynix ADR Inflows

The South Korean won has experienced its biggest monthly gain since 2009 due to a surge in US dollar inflows into the country's foreign exchange market. The influx of dollars is largely attributed to SK hynix Inc.'s American depositary receipt offering on the Nasdaq, which raised approximately 40 trillion won ($26.5 billion).

The won has rebounded steadily after falling to a more than 17-year low of 1,599.2 won per dollar in intraday trading on July 1. On a monthly basis, the won appreciated by 125.4 won against the US dollar, marking its strongest performance since March 2009.

The Bank of Korea expects the won to continue its upward trajectory due to stronger-than-expected economic growth and rising interest rates in South Korea. According to Lim Hwan-yeol, an economist at Woori Bank, 'the won has entered an upward cycle,' with a predicted exchange rate of 1,380 won per dollar.