The Korean won has strengthened sharply against the U.S. dollar in recent months, raising expectations that the won-dollar exchange rate could fall below 1,300 won per dollar and enter the 1,200 won range, market watchers said Monday. The exchange rate has fallen by more than 200 won from its monthly average of 1,528 won in June, as strong semiconductor exports have helped offset dollar demand from foreign investors selling Korean stocks. The won's recovery is also reflected in its nominal effective exchange rate (NEER), which measures the currency's value against those of its major trading partners without adjusting for inflation. According to the Bank for International Settlements, the won's NEER index rose to 94.83 as of last Tuesday, up from 91.99 at the end of September. This marks the highest level since Oct. 9, 2024, when the index was 94.91. The NEER, which uses 2020 as its base year with a value of 100, fell to 81.99 in June. At the time, the won-dollar exchange rate neared 1,600 won per dollar amid heavy foreign selling of Korean stocks. The monthly average won-dollar exchange r