Strong semiconductor-driven export surges, with October's first 10 days hitting a record $26.1 billion and 102% year-over-year growth, combined with Bank of Korea policy rate hikes totaling 50 basis points since July to 3.00%, have driven USD/KRW sharply lower to 1,335 as of October 12, 2026—its lowest level in over two years. Exporter dollar sales and a softer broad dollar index have reinforced KRW strength, outweighing foreign equity outflows and Middle East risks. Traders price in continued downside pressure into year-end, with upcoming BOK and FOMC meetings on October 22 and 27–28 likely to influence near-term rate path expectations and any rebound toward 1,400 resistance.