The won appreciated and the dollar weakened against the backdrop of strong exports. Against this backdrop, bank foreign-currency deposit balances are reported to have risen sharply.
In the Seoul foreign-exchange market on the 12th, the won rose to 1,333.2 per dollar, and the weekly close was 1,335.1, the highest level since 4 October 2024. The won's value against the dollar has been strengthening after falling to the 1,555 range in July. Against the yen, the won rose to 843.07 per ¥100 during trading, approaching levels seen in early 2008.
The strong performance of exports, particularly semiconductors, was cited as a factor behind the won's rise in real terms against the dollar and yen amid the export boom. Expectations are growing that the supply-and-demand environment, with domestic exporters selling dollars, will continue.
As the won continues to appreciate, demand to purchase foreign currencies in advance has strengthened. The five major city banks' dollar deposit balances rose 35.7% from the end of May to $85.49 billion, while yen deposit balances increased 34.6% to ¥1.1841 trillion.