The won-dollar exchange rate fell today (the 21st) for the first time in 8 trading sessions.

While the U.S. monetary tightening stance and Middle East risks acted as upward pressures on the exchange rate, the strengthening of the Japanese yen and dollar-selling (negotiated selling) by exporters ahead of the Chuseok holiday appeared to have a greater impact.

On this day, the closing price of the won against the U.S. dollar in the Seoul foreign exchange market at 3:30 p.m. stood at 1,381.0 won, down 2.3 won from the same time the previous trading day.

The exchange rate at 3:30 p.m. had risen for 7 consecutive sessions until the 18th, but turned downward on this day.

The exchange rate started trading at 1,387.0 won and rose to as high as 1,387.9 won around 9:00 a.m., but later reversed direction, dropping to 1,380.8 won at 3:26 p.m.

The intraday high on this day was the highest level in about a month since August 26 (1,388.3 won).

The U.S. dollar remained strong as the fallout from the U.S. Federal Reserve's (Fed) rate hikes continued, combined with risk-aversion sentiment driven by geopolitical tensions in the Middle East.

The dollar index, which measures the greenback's value against six major currencies, rose 0.118 to 100.330.

However, dollar-selling movements by exporters appear to have led the downward trend in the exchange rate.

This is interpreted as expectations that exporters might bring forward their dollar-selling timing to secure won-denominated funds ahead of the Chuseok holiday, leading to an oversupply of dollars.

Cautiousness over the weak yen was also cited as one of the backdrop factors for the declining exchange rate.

Foreign media reports emerged that Japanese foreign exchange authorities conducted a rate check as the yen's value continued to decline even after the Bank of Japan (BOJ) raised its benchmark interest rate on the 18th.

Although this did not completely turn the yen into a strong currency, expectations grew that further weakness of the yen could be contained as caution heightened over a potential market intervention by Japanese authorities.

The yen-dollar exchange rate rose 0.165 yen to 157.007 yen.

The won-yen cross exchange rate stood at 879.48 won per 100 yen, down 0.79 won from the previous trading day.

(Photo: Yonhap News)