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The won has risen more than 9 percent against the U.S. dollar over the past month, the highest gain among major currencies.

According to the Bank of Korea's "International Financial and Foreign Exchange Market Trends Since July 2026" on the 14th, the value of the won rose 9.4% against the dollar from the 1st of last month to the 11th of this month.

The won-dollar exchange rate fell from 1549.4 won at the end of June to 1,424 won at the end of July, and then to 1,416 won on the 11th of this month. A fall in the exchange rate means a rise in the value of the won against the dollar.

Analysts say the recent strengthening of the won has been affected by the weak dollar and improved supply and demand in the domestic foreign exchange market due to weak expectations of a U.S. interest rate hike. Amid the easing of uncertainties surrounding the Middle East, the dollar weakened as expectations for a rate hike by the U.S. Federal Reserve (Fed) fell.

The won's rise far exceeded the currencies of other major countries. During the same period, the Mexican peso appreciated 2.4 percent against the dollar, followed by the Japanese yen of 2.1 percent, the British pound of 1.8 percent, the South African rand of 1.2 percent, the euro of 1.0 percent, and the Chinese yuan of 0.6 percent.

On the other hand, the Russian ruble depreciated by 4.6%, while the Turkiye lira and the Taiwanese dollar fell by 2.3% and 1.4%, respectively.

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In particular, despite the Japanese government's direct intervention in the foreign exchange market, the yen's appreciation fell far short of the won. The Japanese government started buying the yen when the yen-dollar exchange rate exceeded 163 yen on the 30th of last month, and the next day, it intervened in cooperation with the United States.

As a result, the yen's value surged by about 4% for two days, but the rate of increase was only 2.1% in the entire period from last month to the 11th of this month.

As the won's value rose sharply in a short period of time, the exchange rate volatility also increased. The average daily fluctuation rate of the won-dollar exchange rate in July from the previous day was 0.53%, up from 0.50% in June. It is the second highest level among major currencies after the Russian ruble of 0.55%.

Brazil's Real followed with 0.45 percent, Norway's Kroner with 0.44 percent, and Japan's yen hit 0.37 percent. The average daily fluctuation in the won-dollar exchange rate also expanded from 7.6 won in June to 8 won in July.

The Bank of Korea previously diagnosed the exchange rate as highly volatile, affected by U.S. dollar flows and domestic foreign exchange supply and demand conditions