South Korean Won rallies to become world's strongest currency

The South Korean Won has emerged as the world's strongest performing currency in the third quarter, gaining approximately 8.8 percent against the US Dollar since early July. At its peak, the currency saw gains exceeding nine percent, reaching levels near 1,414 Won per Dollar, the highest in nearly ten months.

A primary driver of this rally was the $26.5 billion US stock market listing of semiconductor giant SK Hynix. The massive influx of US Dollar earnings from the IPO, which were converted into Won for domestic investment projects, created significant upward pressure on the currency. Additionally, South Korean export companies offloaded accumulated Dollar reserves, supported by coordinated foreign exchange interventions from national authorities.

This surge marks a sharp reversal from the first half of the year, during which the Won was among Asia's worst-performing currencies, losing roughly seven percent of its value. That previous decline was largely attributed to interest rate differentials with the US Federal Reserve and capital outflows into US-based assets.