Lead

The South Korean won has shown resilience against the U.S. dollar in recent sessions, edging higher on several trading days despite heightened geopolitical tensions, according to Yonhap News Agency reports. Analysts attribute the currency's strength primarily to dollar-selling by exporters and SK hynix Inc.'s conversion of proceeds from its U.S. listing into won.

Coverage Comparison

Yonhap News Agency reported on multiple trading days in July, each with distinct quotes and market conditions:

  • On Monday, July 20, the won edged higher, quoted at 1,478.4 won per dollar at 3:30 p.m., up 0.1 won from the previous session. Exporters sold dollars despite an intensifying conflict between the United States and Iran, according to analysts.
  • On Tuesday, July 21, the won strengthened to 1,474.3 won per dollar, up 5 won, and at one point rose to 1,471.1, the strongest since May 11. Foreign investors bought a net 295 billion won of local stocks, and the KOSPI jumped 3.56% to 6,474.95 points.
  • On Wednesday, July 29, the won strengthened to a nearly five-month high, quoted at 1,446.7 won per dollar, up 15.8 won, the strongest since Feb. 27. Foreigners sold a net 1.2 trillion won of local stocks, and the KOSPI dived 5.98% to 5,663.24 points.
Across these sessions, the won's appreciation was consistently linked to SK hynix's U.S. listing. The company planned to raise up to 43 trillion won via a stock offering for its American depositary receipts on the Nasdaq market. Analysts cited dollar-selling by SK hynix as it converted proceeds into won, alongside exporters' dollar sales.

Key Claims

  • Currency quotes: The won was quoted at 1,474.3 won per dollar on Tuesday, July 21; 1,446.7 won on Wednesday, July 29 (a nearly five-month high); 1,478.4 won on Monday, July 20; and 1,501.4 won on Friday, July 10, all at 3:30 p.m., as reported by Yonhap.
  • Foreign investor activity: Overseas investors bought a net 295 billion won of local stocks on Tuesday, July 21; a net 516.1 billion won on Monday, July 20; and a net 300 billion won on Wednesday, July 8, according to Yonhap. Foreigners sold a net 1.2 trillion won on Wednesday, July 29.
  • KOSPI performance: The benchmark index jumped 3.56% on Tuesday, July 21; dropped 4.46% on Monday, July 20; gained 2.52% on Friday, July 10; and dived 5.98% on Wednesday, July 29, per Yonhap.
  • SK hynix's U.S. listing: SK hynix Inc. plans to raise up to 43 trillion won via a stock offering for the listing of its American depositary receipts on the Nasdaq market, as reported by Yonhap. The listing was described as potentially one of the world's largest share sales.
  • Analyst attribution: Some analysts attributed the won's strength to dollar-selling by SK hynix and exporters, as well as an influx of foreign exchange forwards related to the U.S. listing, according to Yonhap.