South Korean Won Hits Decade-Long Rally Amid AI Boom, Bond Index Inclusion

• The South Korean won has achieved its longest winning streak in over 13 years, strengthening for a seventh consecutive session.
• The currency appreciated by 0.8% to 1,425.25 per dollar on Thursday, January 28, becoming Asia's top performer.
• Investor enthusiasm for artificial intelligence and Samsung Electronics' strong earnings are driving demand for the won and boosting the export sector.
• South Korea's upcoming inclusion in FTSE Russell's World Government Bond Index, starting in April, is attracting significant interest in Korean debt.
• Analysts predict further strengthening of the won, potentially reaching 1,385 per dollar by late 2026, driven by strong fundamentals and market reforms.

Why It Matters: The South Korean won is experiencing its longest rally in over a decade, fueled by AI enthusiasm and bond index inclusion.