South Korea's won jumped to a two-year high on Monday, rising as much as 0.8% to 1,333.30 against the dollar after markets returned from a three-day long weekend. According to reports from NDTV, the currency later trimmed its advance to 0.5%, with most regional peers also gaining during the session. The currency rose as much as 0.8% to 1,333.30 against the dollar after the markets returned from a three-day long weekend, before trimming its advance to 0.5%.
The won's strength was attributed to lower oil prices and heavy dollar selling by local companies, particularly chipmakers. As reported by NDTV, Min Gyeong-won, an economist at Woori Bank in Seoul, explained that the won is strengthening in line with broad dollar weakness as the euro, pound and yen all gain on lower oil prices. Dollar sales by exporters, particularly chipmakers, should continue to support the won, though flows are light today. The won is strengthening in line with broad dollar weakness as the euro, pound and yen all gain on lower oil prices.
The Korean won has demonstrated remarkable resilience this year, rising 7.7% overall. According to NDTV, the currency has swung from Asia's worst-performing currency in the first half to its best in the second half on strong exports and corporate dollar selling. Thin trading volumes due to Japan's holiday are also fueling volatility in the foreign exchange markets, with the won rising 7.7% this year.
