South Korean won hits 2-year high on lower oil, dollar sales

South Korea's won reached a two-year high on Monday, buoyed by falling oil prices and substantial dollar sales by local firms. The currency surged as high as 0.8% to 1,333.30 per dollar following the markets' return from a three-day weekend, before cooling to a 0.5% gain. Economists attribute the won's rise to the broader weakness in the dollar, with the euro, pound, and yen also benefiting from lower oil prices.

Min Gyeong-won, an economist at Woori Bank in Seoul, noted that corporate dollar selling, particularly from chipmakers, is expected to continue supporting the won. However, today's trading volumes are thin due to Japan's holiday, contributing to market volatility. Over the past year, the Korean won has appreciated by 7.7%, moving from Asia's worst-performing currency in the first half to its best in the second, driven by robust exports and corporate dollar sales.