The South Korean won traded at around 1,345 per dollar, reaching its strongest level since October 2024, as strong export earnings supported the currency. South Korea’s cumulative exports reached a record $709.4 billion so far this year, already surpassing the 2025 annual record, with semiconductor exports rising 169.6% in January-August amid strong demand for AI-related chips. Continued foreign investment in Korean equities also supported demand for the won, reflecting stronger foreign appetite for Korean assets. At the same time, corporate dollar deposits at the country’s five major banks climbed to a record of roughly $77 billion as exporters accumulated foreign-currency proceeds and delayed converting them into won. The won has strengthened by roughly 250 won from its July low, highlighting the currency’s sharp recovery. Meanwhile, markets raised the probability of a September Fed rate hike to around 60% from roughly 50%, keeping the Fed outlook a headwind for the won.