Won gains on export surge and rising dollar supply, near 2024 low

Bank of Korea statistics indicate the won traded at an average of 1,342.6 per dollar during the first twelve trading days of October, marking the lowest level since the September 2024 average of 1,332.8. The appreciation follows a wave of dollar selling by exporters, helped by a September trade surplus of roughly US$2.5 billion and a decline in foreign investors’ net stock sales. The central bank’s benchmark rate, lifted to 3 percent after consecutive hikes in July and August, and the International Monetary Fund’s upgraded 2026 growth forecast of 3.3 percent have also bolstered the currency.

Experts project the won to stay in the low- to mid-1,300s, though they warn that Middle-East tensions, oil price volatility and AI-related capital outflows could keep the market volatile. In the yen market, the won’s monthly average of 849 per 100 yen in October is its strongest since December 2007.