The won-to-dollar exchange rate dropped to the 1,350-won range today (the 3rd), driven by continued dollar-selling by exporters and growing caution over potential currency intervention regarding the yen by Japanese financial authorities.

In the Seoul foreign exchange market today, the won-to-dollar exchange rate was recorded at 1,362.6 won per dollar as of 9:10 a.m.

This is down 6.1 won from the closing reference price of 1,368.7 won at 3:30 p.m. the previous trading day.

The exchange rate fell as low as 1,357.8 won overnight, marking its lowest level since July 3 of last year (1,353.8 won).

This is the first time the exchange rate has fallen below the 1,360-won mark since July 4 of last year (1,358.2 won).

Starting the trading session at 1,359 won today, the exchange rate has been fluctuating between the upper 1,350-won and lower 1,360-won ranges.

Downward pressure on the exchange rate persists as exporters continue to release dollar-selling volumes onto the market, while import companies' settlement demand has not recovered significantly.

While exporters typically unloaded dollar supplies around the end of the month, they have recently shifted toward a strategy of constantly releasing dollars into the market.

Caution over potential intervention in the yen has also led to a stronger won, further pulling down the exchange rate.

Following their large-scale joint intervention in late July to counter persistent yen weakness, U.S. and Japanese authorities recently held consecutive meetings at the G20 Finance Ministers' Meeting, where U.S. Treasury Secretary Scott Bessent met with Bank of Japan Governor Kazuo Ueda and Japanese Finance Minister Satsuki Katayama.

Reports indicate that Secretary Bessent urged Japanese authorities to raise benchmark interest rates and manage the yen stably.

With expectations growing that the BOJ will soon raise interest rates, the yen-to-dollar exchange rate fell by about 1 yen overnight to around 158.20 yen per dollar.

As of 9:10 a.m., the yen-to-dollar exchange rate stood at 158.862 yen, down 0.763 yen.

Whether the exchange rate will decline further today is expected to depend on import companies' settlement demand.

If market participants view the 1,350-won range as a primary support level, settlement demand from importers is expected to flow in and push the exchange rate slightly higher.

The dollar index, which measures the greenback's value against six major currencies, stood at 99.596, down 0.128.

The cross rate for the Korean won against the Japanese yen was down 0.41 won at 857.41 won.

(Photo: Yonhap News)