The USD/KRW exchange rate climbed to 1560 in June, driven by significant portfolio outflows and a weakening South Korean Won, according to FX Street. This movement occurred even as South Korea maintained a large current account surplus, highlighting unusual market dynamics.
ING also noted that the earlier massive portfolio outflows were a key factor pushing the USD/KRW to this level, underscoring pressure on the Korean Won despite strong external balances. The divergence between capital flows and Korea’s trade fundamentals signals ongoing volatility in the FX market.
For Japanese investors and traders, monitoring USD/KRW movements is essential given South Korea’s role in regional trade and supply chains, which can indirectly influence FX and equity markets across Asia.