On the 29th, the won-dollar exchange rate fell by nearly 14 won, dropping below 1,400 won for the first time in three days.
In the Seoul foreign exchange market, the won-dollar exchange rate weekly transaction closing price at 3:30 p.m. came in at 1,398.7 won, down 13.7 won from the previous trading day. The decline was the largest since the 16.2-won drop on the 4th of last month.
The rate opened at 1,409.0 won early in the session, widened its decline, and finished the weekly session at the intraday low. After breaking through 1,400 won intraday on the 24th and ending above 1,400 won at the close on the 25th, it rose into the 1,410-won range on the 26th, then retreated to the 1,300-won range after three trading days.
The market sees strengthened expectations for interest rate cuts by the U.S. Federal Reserve (Fed) as the backdrop for the day's decline in the exchange rate. According to the U.S. Department of Commerce, the core personal consumption expenditures (PCE) price index for August, excluding volatile food and energy, rose 0.2% from the previous month and 2.9% from a year earlier, matching the forecast compiled by Dow Jones.
The U.S. dollar index, which shows the dollar's value against six major currencies, fell 0.44% from the previous trading day to 97.948. U.S. stocks, by contrast, rebounded after four sessions and ended higher. The Dow Jones Industrial Average rose 0.65%, while the S&P 500 and the Nasdaq composite gained 0.59% and 0.44%, respectively.
Foreign buying also returned to the domestic stock market. The Korea Composite Stock Price Index (KOSPI) closed at 3,431.21, up 45.16 points, or 1.33%, from the previous session, while foreigners were net buyers of about 445.7 billion won in the main board.
As of 3:30 p.m., the won-yen financial exchange rate stood at 939.89 won per 100 yen, down 3.19 won from the same time the previous trading day. The dollar-yen exchange rate fell 0.64% to 148.806 yen.