The USD/KRW pair gained 0.2% to 1,346.98, although the won was earlier as strong as 1,334.70, its best level since October 2024

Asian currencies were broadly firmer on Monday, led by the won’s surge to its strongest level in nearly two years, while the yen extended its strongest weekly rally since late July.

The USD/KRW pair gained 0.2% to 1,346.98, although the won was earlier as strong as 1,334.70, its best level since October 2024.

A rally in Korean semiconductor shares led by Samsung Electronics and SK Hynix supported the currency. Foreign investors also bought more than 800 billion won ($598 million) of Korean shares on the KOSPI, extending inflows to a third straight session.

The USD/JPY pair was last trading at 156.14, leaving the yen near its strongest level in more than a month. The yen was up 2.7% last week putting it on course for its best weekly performance since July.

The yen’s rally has been driven by more than one factor. Traders are increasingly expecting the Bank of Japan to raise its benchmark rate by 25 basis points on September 18 while leaving the door open to faster increases thereafter.

Meanwhile, the USD/CNH pair and the USD/CNY pair eked out marginal gains. The USD/INR pair dropped 0.14% to 94.344, extending the rupee’s recent gains. The USD/SGD pair added 0.08% to 1.2676, while the USD/MYR pair rose 0.21% to 4.0496.

The Philippines remained a major laggard. The peso has dropped 6.2% this year, making it the worst-performing currency.

Its vulnerability to higher oil prices is particularly acute because the economy relies heavily on services rather than manufacturing or commodity exports.

Among other currencies, the USD/AUD pair traded flat at 1.39, leaving the Australian dollar around $0.72. The USD/NZD pair added 0.14% to around 1.70, implying a kiwi near $0.59.