Won Strengthens Against Dollar

The Korean won strengthened W18 against the U.S. dollar on Monday to close at W1,401.20, the highest closing price since September. At one point in trading the won rose to the W1,300 level.

The rise was powered by expectations of the U.S. Federal Reserve slowing the pace of interest rate hikes next month, reducing investors' appetite for safe-haven dollars.

Another reason is that China could end its draconian zero-COVID policy early next year.

But traders said it is too early to expect the trend to last.

Baek Seok-hyun at Shinhan Bank said, "The exchange rate rose temporarily as investors expected positive news from the U.S. and China, but there are still more uncertainties in the global economy and it is too early to determine whether the won will continue to strengthen."