Seoul: The South Korean won surged to a near two-year high against the U.S. dollar on Monday, as local exporters actively converted their dollar reserves into the local currency. The won was quoted at 1,340.5 per dollar at 3:30 p.m., marking an increase of 9.9 won from the previous stock trading session's close.
According to Yonhap News Agency, the won's rise was partly driven by dollar sales from local exporters. At one point during morning trading, the won appreciated to 1,334.7 per dollar, the strongest level recorded since October 4, 2024. This recent rebound has been fueled by local exporters reducing their dollar holdings and SK hynix Inc. converting the proceeds from a major U.S. listing into the Korean currency.
Despite the won's impressive gains, the currency faced some resistance after expectations for a U.S. interest rate hike were heightened following robust jobs data. The currency's momentum was further tempered when Yonhap Infomax reported that the National Pension Service, a significant global pension fund, halted its foreign exchange hedging operations.
In the stock market, foreigners purchased a net 2.5 trillion won (approximately US$1.86 billion) in local stocks during the latest trading session. This influx contributed to the benchmark Korea Composite Stock Price Index's 4.61 percent surge, closing at 6,995.39.