After October, Korean Won Value Against Dollar Rises 4.9%... Fourth Largest Increase Among Major Countries

[Asia Economy Reporter Kim Eunbyeol] The value of the Korean won has continued its high-flying trend, rising 4.9% over the past month and a half.

According to the "International Finance and Foreign Exchange Market Trends since October" released by the Bank of Korea on the 12th, the value of the won against the US dollar increased by 4.9% from October 1 to this month’s 10th. Among the currencies of 13 major countries worldwide, this was the fourth largest increase in value, following Mexico (8.8%), South Africa (7.0%), and Indonesia (5.9%).

The won’s value rose amid a continued weakness of the US dollar and strength of the yuan, along with favorable economic indicators from Korea. The gross domestic product (GDP) growth rate in the third quarter rose significantly to 1.9%, and the current account surplus in September reached $10.21 billion, the largest since September 2018.

The volatility of the won-dollar exchange rate remained at the previous month’s level. The exchange rate volatility in October was 0.30%, the same as in September.

Meanwhile, foreign investment in domestic securities turned to net inflows last month, mainly in stocks. This was due to improved investor sentiment amid expectations of a global economic recovery. Foreign stock investment increased by $1.38 billion in October, turning positive for the first time in three months. Bond funds saw a net outflow of $230 million, mainly from private funds.

This content was produced with the assistance of AI translation services.