Won Rises Above 1,300 per Dollar for First Time in 10 1/2 Months
Summary
- The won-dollar exchange rate fell into the 1,300 range for the first time in about 10 1/2 months as the likelihood of a Fed benchmark rate hike next month declined.
- U.S. retail sales, the consumer price index (CPI) and the producer price index (PPI) all came in below market expectations, adding to dollar weakness.
- Steady exporter dollar selling, led by semiconductor companies, has supported won strength and the decline in the exchange rate.
Forecast Trend Report by Period
The won strengthened into the 1,300-per-dollar range for the first time in about 10 1/2 months as fading expectations for a Federal Reserve rate hike next month and dollar sales by South Korean exporters weighed on the greenback.
In Seoul trading on Aug. 19, the won was at 1,399.0 per dollar as of 12:02 p.m. The currency had not traded below the 1,400 level since Oct. 2, 2025, when it stood at 1,399.5 per dollar.
The won opened at 1,413.3 per dollar and extended its advance during the session. The dollar weakened as the odds of a Fed rate hike in September receded, helping push the exchange rate lower.
Recent U.S. retail sales, the consumer price index and the producer price index all came in below market expectations. South Korean exporters also continued to sell dollars, adding to downward pressure on the US currency. Those sales, which typically cluster at month-end, have recently been steady, led by semiconductor companies, supporting won strength.
Park Su-rim, Hankyung.com reporter, paksr365@hankyung.com
Korea Economic Daily
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