Won Falls Into 1,300s Against Dollar for First Time in 10 1/2 Months
Summary
- The won-dollar exchange rate fell into the 1,300-won range for the first time in about 10 1/2 months.
- Lower odds of a September benchmark interest-rate hike by the US Federal Reserve (Fed) led to dollar weakness.
- Dollar sales by exporters, led by steady selling from semiconductor companies, are supporting won strength.
Forecast Trend Report by Period
The won strengthened into the 1,300s against the dollar for the first time in about 10 1/2 months as the likelihood of a Federal Reserve interest-rate increase next month receded and exporters sold dollars.
In Seoul trading on August 19, the won was at 1,399.0 per dollar as of 12:02 p.m. The exchange rate fell below the 1,400-won mark for the first time since October 2 last year, when it stood at 1,399.5 won.
The won opened at 1,413.3 per dollar and extended its gains during the session. The move was driven by dollar weakness as expectations for a Fed rate increase in September eased.
Recent US data on retail sales, the consumer price index and the producer price index all came in below market expectations. Exporters also added to pressure on the dollar by selling the currency. Those sales, which usually 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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