The South Korean won rallied on Monday to a two-year high, supported by weaker
oil prices and heavy dollar selling by domestic corporates. The won rose as much
as 0.8% to 1,333.30 per dollar after markets reopened following a three-day
holiday, before trimming gains to 0.5%; most Asian currencies also strengthened.
Market participants say exporters—particularly semiconductor firms—are
continuing to sell dollars, which should keep providing support, though
liquidity was light. The won has gained 7.7% YTD, moving from Asia's weakest
performer in 1H to one of H2's best performers on the back of strong exports and
corporate dollar sales.
