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Won rebounds as foreign inflows lift KRW and ease USD/KRW

USD/KRW has retreated nearly 8.9% from its July high of 1,559, and foreign investors have net bought USD 1.9 billion of South Korean equities since 30 July.

Reported · Written up by our desk · Major Pairs

Commerzbank, via FXStreet, said the South Korean won is getting support as foreign investors return and risk sentiment improves around the country’s tech and semiconductor sector. The Kospi has rebounded 29.5% from its 30 July low, helped by strong technology earnings and improved sentiment toward semiconductor and memory chipmakers.

As equity volatility has eased, Commerzbank noted foreign participation has strengthened, with foreign investors net buying USD 1.9 billion of South Korean equities since 30 July. FXStreet also said that combination has helped bolster the Korean won, even as exporters continue to repatriate earnings and foreign portfolio inflows remain supportive.

In currency terms, USD/KRW rose 0.3% to 1,421 on a stronger US dollar, but is still down nearly 8.9% from the July high of 1,559. FXStreet added that KRW is the second-strongest Asian currency this year, up 1.5% versus USD and outperforming the regional ex-Japan average of -2.1%.

Latest closeKospi 6,813.34 ▲3.6%

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