South Korean won extends rally to longest winning run in over a decade

The South Korean won has surged to its strongest position in months, marking its most sustained advance in more than 13 years as investor enthusiasm around artificial intelligence and anticipation of a major bond market milestone drive demand for the currency.

Trading on Thursday, January 28, saw the won appreciate as much as 0.8% to 1,425.25 per dollar, extending its climb for a seventh consecutive session, marking the longest rally since early 2013.

The currency has emerged as Asia's top performer on the day, buoyed by Samsung Electronics' blockbuster earnings that signal strong prospects for the nation's export sector.

The country's imminent addition to FTSE Russell's World Government Bond Index, scheduled to begin in April through an eight-month phased inclusion, has amplified interest in Korean debt. Market reforms and optimism surrounding AI-linked companies are simultaneously attracting equity flows.

"The fundamentals for South Korea suggest a stronger FX through 2026," Michael Wan, senior currency analyst at MUFG Bank, told Bloomberg. He highlighted the yen's influence as another catalyst, while raising questions about potential intervention measures. Wan projects the won could strengthen to 1,385 per dollar by late 2026.

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