Societe Generale reports that the South Korean Won (KRW) has been one of Asia’s standout performers recently, with the USD/KRW exchange rate declining from approximately 1,390 to 1,360. This movement was attributed to local exporters selling dollars ahead of the Chuseok holiday, reflecting increased demand for the Won [1]. The bank highlights a supportive backdrop for the currency, noting South Korea’s robust export engine. Early-September exports surged by 78.3% year-on-year, primarily driven by AI-related shipments, while imports also accelerated by 26.7% [1].
Despite some volatility during the week, the KRW benefited from these strong export figures, which have reinforced its position among regional currencies. Societe Generale emphasizes that the broader environment remains favorable for the Won, with export momentum continuing to support the currency [1].
Market implications include a notable strengthening of the KRW, as exporters’ dollar sales and the surge in exports have contributed to the currency’s appreciation. The report does not mention specific analyst forecasts or forward-looking statements beyond the supportive backdrop provided by export growth [1].
CONCLUSION
The South Korean Won has strengthened against the US dollar, driven by a surge in exports—especially AI-related shipments—and increased dollar sales by local exporters ahead of the Chuseok holiday. The supportive export environment suggests continued resilience for the KRW, positioning it as a standout performer in the region.