South Korean won (KRW) market outlook and exchange rates

KRW Market Update

12 Aug 2026 • 00:33 GMT

KRW/USD 0.000708

The South Korean won (KRW) remains notably strong against the US dollar, trading at around 0.000708, which is about 5.8% above its three-month average. Over recent weeks, the KRW has experienced substantial volatility, moving within a 10.8% range from 0.000641 to 0.000710. This strength is partly driven by South Korea’s solid trade surplus and steady capital inflows.

Meanwhile, the US dollar continues to strengthen amid expectations of Federal Reserve rate hikes and risk aversion in global markets, supported by robust US jobs data and rising energy prices. The USD has been supported by geopolitical tensions and energy market dynamics, which could keep its influence elevated in the near term.

Looking ahead, many analysts expect the KRW to appreciate further by year's end, supported by South Korea’s healthy trade balance and inclusion of Korean bonds in major global indices. However, if US interest rate hikes accelerate more than anticipated or South Korea’s economic momentum slows, the won’s gains could be limited. Overall, the outlook suggests ongoing volatility but a cautiously optimistic trend for the KRW against the USD.