The won strengthened against the backdrop of strong semiconductor exports, with the exchange rate against the yen falling to the 846-won range per 100 yen. Increased dollar demand and a widening current-account surplus have been cited as factors supporting the currency.
The won's value was supported by South Korea's strong semiconductor exports, and the won-yen exchange rate fell to 846.28 won per 100 yen. This was the won's lowest level in approximately 18 years and 9 months, dating back to January 2008.
The same day, the won fell against the dollar to 1,338.8 won per dollar, with increased dollar supply cited as a factor supporting the currency. The yen remained weak even after the Bank of Japan raised its policy rate, and reports said the effect of the intervention did not last.
Moon Jeong-hee said that South Korea's current-account surplus and increased dollar supply were strengthening the won against other currencies, and also commented on the relationship with the yen exchange rate.
Market participants said that yen weakness and won strength could continue depending on overseas fund flows, while attention is focused on the possibility that the GPIF's consideration of expanding domestic-asset investments could affect demand for yen purchases.