16.10.202607:59:24UTC+00South Korean Won Strengthens Near 2-Year High

The South Korean won traded around 1,333 per dollar, paring earlier losses and moving toward its strongest level since October 2024, as an easing sell-off in semiconductor stocks and renewed appetite for risk assets supported the currency.

Foreign investors turned net buyers of South Korean equities, purchasing KRW 343.5 billion worth of shares after a prolonged tech-led slump, helping to alleviate concerns about capital outflows.

Sentiment was further buoyed by Federal Reserve Chair Kevin Warsh’s upbeat assessment of the US economy and AI-driven growth prospects, which helped revive demand for riskier assets. A pullback in US Treasury yields and a weaker dollar also lent additional support to the won.

However, Warsh offered no clear signal on whether rates would be raised this month, while robust US economic data and lingering inflation concerns strengthened expectations for a rate hike in December. Persistent worries over AI-related valuations, intensifying Chinese competition in memory chips, and elevated inflation risks remained key headwinds for Korean markets.