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South Korean won hits 11-month low against U.S. dollar
The South Korean won has strengthened significantly against the U.S. dollar, with the KRW-USD exchange rate dropping into the 1,370-1,380 won range, marking an 11-month low. This rapid appreciation follows a period where the rate peaked near 1,559 won in early July.
Several factors are driving the increased supply of dollars in the domestic market, including a substantial trade surplus—reaching $167.8 billion in the first seven months of the year—and significant dollar selling by non-financial private companies. Additionally, potential shareholder return programs from major tech firms like Samsung Electronics and SK hynix may increase won demand.
While a stronger won can lower import costs and benefit sectors such as aviation, travel, and food processing, it poses risks to export-oriented companies. Many mid-sized exporters have expressed concern over exchange rate volatility, noting that rapid shifts disrupt business planning and profit margins. The market remains cautious ahead of the Bank of Korea's Monetary Policy Board meeting, where interest rate decisions will be closely watched for their impact on currency stability.
Entities
Bank of Korea · Federal Reserve Bank of Minneapolis · Neel Kashkari · SK Hynix · Samsung Electronics · South Korea · U.S. Department of the Treasury · U.S. Treasury · United States
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The U.S. Treasury is doubling the scale of long-term nominal treasury buybacks from $2 billion to at least $4 billion.
- [○ 1 SOURCE] The U.S. Treasury announced that liquidity-support treasury buybacks could reach up to $38 billion this quarter.
- [DISPUTED] The KRW-USD exchange rate hit an 11-month low, dropping into the 1,370 won range during intraday trading on the 24th. m.imaeil.com · www.imaeil.com · biz.heraldcorp.com
- [DISPUTED] The KRW-USD exchange rate fell to 1,383.60 won during early trading on the 24th.
- [● 2 SOURCES] South Korea's current account surplus for the first half of the year reached a record $191 billion. m.imaeil.com
- [○ 1 SOURCE] Minneapolis Fed President Neel Kashkari expressed uncertainty regarding inflation returning to target levels in the short term.
- [○ 1 SOURCE] The Bank of Korea's Monetary Policy Board is scheduled to decide on interest rates on the 27th. www.tokenpost.kr
- [○ 1 SOURCE] 47.3% of mid-sized export companies identified exchange rate volatility as a major risk for the second half of the year. biz.heraldcorp.com
- [○ 1 SOURCE] Non-financial private companies' net dollar selling reached $186.9 billion. m.imaeil.com
- [○ 1 SOURCE] South Korea's trade surplus for the first seven months of the year reached $167.8 billion. www.imaeil.com
- [○ 1 SOURCE] The KRW-USD exchange rate fell from a high of 1,559.2 won on July 1 to 1,376.5 won on August 24. biz.heraldcorp.com