South Korea’s won is poised for its longest winning streak in 13 years, driven by a surge in artificial intelligence enthusiasm and fresh capital inflows. Market watchers note that the currency’s climb follows expectations of a major bond index inclusion, which could cement the rally.

Analysts point to the bond index inclusion as a catalyst that will likely attract institutional investors seeking stable returns. The move also signals confidence in South Korea’s fiscal outlook, potentially lowering borrowing costs and encouraging further foreign investment in the region for long-term growth prospects.

Currency traders anticipate a steady rise as the won gains traction among risk‑averse portfolios. However, volatility could spike if global rates shift or AI hype wanes. Investors should monitor the upcoming bond index announcement and any policy tweaks from the Bank of Korea in 2024.

With the won on a bullish trajectory, corporate earnings in South Korea could see a boost from cheaper financing. Market participants will watch the Bank of Korea’s next policy meeting for clues on whether the central bank will tighten or maintain its accommodative stance policy.