Won breaks below 1,400 per dollar

The won reached its strongest level in more than 10 months as weak U.S. data eased expectations of a September Federal Reserve rate hike.

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People exchange currencies on Aug. 18 in the Seoul foreign exchange market, as the won strengthens against the dollar. The won is trading at 1,410.0 per dollar in this photo.

The won strengthened past the 1,400-per-dollar mark Wednesday for the first time in about 10 and a half months, as weaker-than-expected U.S. economic data dampened expectations for a Federal Reserve rate hike in September.

The won was trading at 1,399.0 per dollar as of 12:02 p.m. in the Seoul foreign exchange market, strengthening from an opening level of 1,413.3.

It was the first time the exchange rate had fallen below 1,400 won per dollar since Oct. 2 last year, when it stood at 1,399.5 won. The won continued to gain ground against the dollar after the market opened Wednesday.

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The dollar weakened as expectations for a September rate hike by the U.S. Federal Reserve receded following a series of weaker-than-expected economic indicators.

Recent U.S. retail sales data, along with the consumer price index and producer price index, all came in below market expectations.

Dollar selling by Korean exporters also supported the won's gains. Such selling — previously concentrated toward the end of each month as exporters converted dollar-denominated earnings into won — has recently become more frequent, particularly among semiconductor companies, which adds downward pressure on the dollar.


BY PARK JONG-SUH [shin.woojin@joongang.co.kr]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

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