# South Korean won and US dollar exchange rate volatility

> Live situation record from CLSTR: https://clstr.news/situations/south-korean-won-and-us-dollar-exchange-rate-volatility
> Updated: 2026-10-18T06:05:00.000Z. Sources: 6. Developments: 2.

In the third quarter of 2026, South Korean financial markets saw high returns for ‘dollar inverse’ exchange-traded funds (ETFs), which bet on a decline in the US dollar. The KODEX US Dollar Futures Inverse 2X, TIGER US Dollar Futures Inverse 2X, and KIWOOM US Dollar Futures Inverse 2X led rankings with returns exceeding 22%, driven by a significant drop in the KRW-USD exchange rate.

By mid-October, the South Korean won strengthened further, reaching a 25-month low against the US dollar at the 1,330 won level. This appreciation was attributed to an increased supply of US dollars from a boom in semiconductor exports, specifically from major exporters like SK hynix. The strength of the won also impacted other currency pairs, driving the won-yuan exchange rate to a one-year low and the won-yen fiscal exchange rate to an 18-year low.

## Timeline

### 2026-10-18: South Korean won hits 25-month low against US dollar

The South Korean won has reached a 25-month low against the US dollar, driven by a surge in semiconductor exports and increased dollar supply in the domestic market.

4 sources. https://clstr.news/cluster/south-korean-won-hits-25-month-low-against-us-dollar

### 2026-10-03: US dollar inverse ETFs top South Korean quarterly returns

South Korean inverse ETFs betting on a weaker US dollar dominated the top three highest returns for the third quarter, driven by a significant drop in the KRW-USD exchange rate.

3 sources. https://clstr.news/cluster/us-dollar-inverse-etfs-top-south-korean-quarterly-returns

---
Cite as: South Korean won and US dollar exchange rate volatility. CLSTR, https://clstr.news/situations/south-korean-won-and-us-dollar-exchange-rate-volatility