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NH Securities Sees Potential for KRW to Dip to Low 1,300s Against USD
Electronic Technology · Semiconductors · yonhap_finance · 2026-09-03
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NH Investment & Securities predicts the USD/KRW exchange rate could slide to the low 1,300 range, driven by strong corporate dollar selling and semiconductor sector inflows.
What Happened
Drivers of KRW Strength: NH Investment & Securities attributes the recent decline in the USD/KRW exchange rate to increased dollar selling by export-oriented firms. Strong export performance and shareholder return initiatives by semiconductor companies, including SK Hynix, have significantly boosted dollar supply in the market.
Market Dynamics: A reduction in foreign net selling of domestic stocks compared to the first half of the year has eased upward pressure on the exchange rate. Furthermore, the government's commitment to currency stability has helped curb volatility, fostering a more stable environment for the Korean won.
Short-term Outlook: Analyst Kwon Ah-min suggests that given the stronger-than-expected corporate dollar supply, the short-term floor for the exchange rate should be adjusted down to the low 1,300 range. However, persistent structural demand for dollars, such as from retail investors buying U.S. stocks, is expected to prevent a continuous, sharp decline.
Long-term Perspective: While the won may remain strong in the near term, structural demand for the greenback is expected to provide a floor for the exchange rate in the medium to long term. Analysts expect the currency to maintain a stable trend rather than experiencing a sustained, rapid depreciation.