South Korean won hits 2-year high on lower oil, dollar sales

South Korea’s won jumped to a two-year high on Monday, supported by lower oil prices and heavy dollar selling by local companies.

The currency rose as much as 0.8% to 1,333.30 against the dollar after the markets returned from a three-day long weekend, before trimming its advance to 0.5%. Most regional peers also gained.

“The won is strengthening in line with broad dollar weakness as the euro, pound and yen all gain on lower oil prices,” said Min Gyeong-won, an economist at Woori Bank in Seoul. Dollar sales by exporters, particularly chipmakers, should continue to support the won, though flows are light today, Min added. Thin trading volumes due to Japan’s holiday are also fueling volatility.

The Korean won has risen 7.7% this year, swinging from Asia’s worst-performing currency in the first half to its best in the second on strong exports and corporate dollar selling.