The won-dollar exchange rate stood at 1,418.3 won at 3:30 p.m. on the 14th, closing weekly transactions. That was down 1.1 won (0.07%) from the previous trading day's weekly close. Based on the weekly close, the rate has stayed in the 1,410-won range for six trading days in a row since on the 7th.
The rate was seen as being affected by the decreased likelihood that the U.S. Federal Reserve (Fed) will raise its benchmark interest rate. If the United States holds or cuts rates, the dollar weakens and the exchange rate falls.
According to the Chicago Mercantile Exchange (CME), the chance that the Fed will hold the benchmark rate in September was 67.6% on the 13th, up from 59.4% the previous day. The U.S. producer price index for July was 0% from the previous month, lower than the 0.2% forecast. On this, the Standard & Poor's (S&P) 500 hit a record high on a closing basis, and international oil prices fell.
Sales of dollars held by major export corporations such as SK hynix also played a role. When dollar supply increases in the foreign exchange market, the won strengthens and the exchange rate falls.
However, the narrower decline in the rate compared with July is analyzed to be due to dollar demand from importers. As the rate fell quickly, buying to secure dollars at lower prices expanded. As a result, the pattern of the rate falling in the morning and then reversing higher in the afternoon has continued.