Won-Dollar Exchange Rate Falls to the 1,330-Won Range, Lowest in One Year and 11 Months

[Financial News]  The won-dollar exchange rate has fallen to the 1,330-won range for the first time in one year and 11 months.
In the Seoul Foreign Exchange Market on the 7th, the won-dollar exchange rate stood at 1,336.3 won around 10 a.m. It was down 14.1 won from the previous trading day’s 3:30 p.m. reference rate of 1,350.4 won. The rate fell to the 1,330-won range for the first time in one year and 11 months since October 4, 2024, when it stood at 1,331.3 won. Compared with the recent high of 1,559.2 won on July 1, it has fallen by more than 220 won in two months.
The exchange rate opened at 1,347.8 won and has been extending its decline since 9 a.m.
The won’s strength has not weakened, even though the U.S. employment data expected to affect the exchange rate exceeded market expectations.
U.S. nonfarm payrolls increased by 162,000 in August from the previous month, according to data released on the 4th local time, significantly exceeding market expectations. Although the dollar strengthened amid expectations that the United States is likely to raise interest rates this month, the won-dollar exchange rate nevertheless declined.
Dollar supply and demand conditions are favorable for the won. Dollar-selling volume has continued as semiconductor companies, which remain in a boom, keep converting their dollar earnings. The won-dollar exchange rate has considerable room for further decline.
At the same time, the U.S. Dollar Index (DXY), which measures the value of the dollar against the currencies of six major countries, rose 0.105 to 99.098.
The won-yen cross rate fell 5.12 won to 859.50 won per 100 yen. The yen-dollar exchange rate declined 0.354 yen to 155.831 yen.

[email protected] Jung Sang-gyun Reporter