With a surge in its real value, the Korean won strengthened the most among 27 major currencies across the world last month.
 
According to data from the Bank for International Settlements (BIS) on Monday, the Korean currency’s real effective exchange rate rose two-point-64 percent month-on-month in July to 116-point-93.
 
It marks the highest growth rate among 27 major currencies, including the U.S. dollar. The Australian dollar came in second with a rise of two-point-six percent, followed by the currencies of Japan, New Zealand, and Hong Kong.
 
The Korean won’s rapid appreciation is due to a possible delay in a U.S. interest rate hike, an upgrade in South Korea’s sovereign credit rating, and the inflow of foreign investments. However, there are worries that a stronger won will further hurt the nation’s already sluggish exports.
 
The real effective exchange rate is the weighted average of a country's currency, relative to an index or basket of other major currencies, adjusted for the effects of inflation. 

A reading above the benchmark 100 indicates a currency is overvalued, while a reading below the mark indicates undervaluation.