The Korean won rebounded sharply from around ¥1,600 per dollar in June to the ¥1,320 range, recovering to levels near a two-year high against the dollar. Strong semiconductor exports and dollar weakness have provided support.
The Korean won fell to around ¥1,528 per dollar in June but rebounded to the low ¥1,320 range this month. The nominal effective exchange rate has risen to 94.83, a level close to a two-year high. This has strengthened the won's overall value.
The monthly average won-dollar exchange rate stood at ¥1,337.2 through 23 October. While the rate has continued to decline from the June peak of ¥1,528.0, the actual level appears firm. Meanwhile, the intraday low fell to ¥1,321.2 on 22 October, marking a new low since 2 October.
Market participants said that, taking economic conditions and potential growth into account, the fundamentals are consistent with a level in the mid-¥1,300s. Some also pointed out that the won could rise again if external conditions change.
Position adjustments are under way in the foreign exchange market ahead of monetary policy meetings by major central banks, with policy developments in Japan and the United States attracting attention. The won's strength has been supported by lower import prices and capital inflows into Korean equities, although it is worth noting that the effective exchange rate remains below its historical average.