Won-Dollar Exchange Rate Falls into 1,300-Won Range for First Time in 10 and a Half Months Amid Expectations of US Rate Freeze and Exporter Dollar Selling

The won-dollar exchange rate has fallen into the 1,300-won range for the first time in approximately 10 and a half months, driven by expectations that the U.S. Federal Reserve (Fed) will likely keep its benchmark interest rate unchanged next month, alongside an influx of dollar-selling orders (negotiation selling) from exporters.

In the Seoul foreign exchange market on the 19th, the exchange rate of the won against the U.S. dollar was recorded at 1,399.0 won around 12:02 p.m.

This marks the first time in 10 and a half months that the exchange rate has fallen below the 1,400-won threshold since October 2 of last year (1,399.5 won).

The exchange rate started at 1,413.3 won and steadily expanded its losses throughout the trading session.

The decline in the exchange rate is analyzed to be the result of a weaker dollar, influenced by diminished expectations of a September rate hike by the Fed.

Recently released U.S. indicators, including retail sales, the Consumer Price Index (CPI), and the Producer Price Index (PPI), all came in below market expectations.

In addition, exporters have been unloading dollar-selling orders, further intensifying downward pressure on the dollar.

Export settlement volumes, which traditionally tended to concentrate at the end of the month, are now consistently emerging on a regular basis, led by semiconductor companies, thereby lending support to the strengthening won.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.