South Korea's 3-Year Bond Yields Hold 3.7%-3.9% Range; Dollar-Won Surges to 1,559 on July 8

According to Yonhapinfomax, on July 8, South Korea's 3-year government bond yields held within a 3.7%-3.9% range, while the dollar-won exchange rate surged to 1,559.20 won—its highest level since the 2008 global financial crisis—driven by foreign investors' net selling of local equities. The currency later retreated toward 1,520 won following expectations that SK Hynix's U.S.-listed ADR offering could bring approximately $30 billion in inflows.

The Bank of Korea's monetary policy committee is reconsidering the relationship between interest rates and exchange rates, citing Australia's experience. According to the May policy meeting minutes, BOK officials acknowledged that while exchange rates were historically driven primarily by U.S. dollar movements, recent cases—particularly Australia's rate hikes—suggest domestic rate increases may have gained stronger influence on currency valuations. Market participants expect the central bank to proceed with July rate increases, with the key focus on whether Governor Shin Hyun-sung provides clear guidance on August's policy direction.