The won-dollar exchange rate has dropped below 1,400 won for the first time in over 10 months.
On August 19, in the Seoul foreign exchange market, the exchange rate was trading at 1,399.7 won per U.S. dollar as of 2 p.m.
This marks the first time the rate has fallen below 1,400 won since October 2 of last year, when it was at 1,399.5 won.
The dollar's weakness is attributed to growing expectations that the U.S. Federal Reserve will not raise interest rates next month.
Recent data on U.S. retail sales, the Consumer Price Index (CPI), and the Producer Price Index (PPI) all fell short of market expectations, easing concerns about inflation and economic overheating in the U.S.
From a supply and demand perspective, the selling of dollars by exporters has supported the won's strength. Analysts suggest that the recent trend of exporters, particularly in the semiconductor sector, regularly releasing their dollar holdings has increased downward pressure on the exchange rate.
* This article has been translated by AI.
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