The South Korean won strengthened past the critical 1,400-per-dollar psychological level for the first time in over ten months, with a booming semiconductor industry fueling the currency's continued rally.
On Wednesday, the won climbed as much as 0.9% to 1,398.80 per dollar, marking its strongest level since September 2025. According to two foreign exchange traders in Seoul, custodian banks sold dollars to settle foreign purchases of local equities, which further boosted the won's momentum.
Foreign investors have net purchased 8 trillion won ($5.7 billion) of Korean stocks so far this month. The won has appreciated more than 10% this quarter, outperforming other Asian currencies.
The won's rebound highlights the strength of Korea's chip sector, with semiconductor exports growing at a rapid pace. SK Hynix announced it will use the $26.5 billion raised from its U.S. listing for domestic projects, and the company's dollar conversion activities have also provided support for the won's exchange rate.
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