KRW strengthens nearly 9% from July highs on USD1.9bn foreign equity inflows and exporter repatriation.
The South Korean Won has rebounded nearly 8.9% from its July peak of 1,559 against the USD, trading at 1,421. Exporters’ repatriation and USD1.9bn in foreign equity inflows since July 30 have bolstered the currency, making it the second-strongest Asian currency this year with a 1.5% gain versus the USD.
The Kospi index surged 29.5% from its July 30 low, driven by strong tech earnings and improved sentiment toward semiconductor and memory chipmakers. Foreign investors returned to the market as volatility eased, with net purchases of South Korean equities supporting the KRW.
Despite a modest 0.3% rise yesterday due to a stronger USD, the KRW outperformed the regional ex-Japan average, which declined 2.1%. Further moderation in equity volatility may sustain near-term support for the currency.