The won-dollar exchange rate against the U.S. dollar finished weekly trading at 1,397.7 won at 3:30 p.m. on the 19th. It was down 14.1 won (0.99%) from the previous trading day. Based on the weekly closing price, it is the first time in about 11 months that the rate has fallen below 1,400 won since Sept. 29 last year (1,398.7 won).
The rate opened the day at 1,413.3 won and was at 1,413.5 won at 9 a.m. It then widened its decline, falling to as low as 1,396 won around 3:06 p.m. This is the first time the intraday rate has recorded below 1,400 won (low) since Oct. 2 last year (1,399.5 won).
Contrary to market expectations that the rate could rise into the 1,410-won range, it showed a steady decline without sharp surges or plunges. This is seen as because major exporters, including SK hynix, are selling dollars they hold. Corporations' dollar selling usually takes place at the end of each month and has been cited as a seasonal factor in the foreign exchange market. However, recently, analysis notes that selling pressure is appearing from time to time.
Another factor cited for the decline is growing expectations that the U.S. Federal Reserve (Fed) may not raise the benchmark interest rate next month. If the Fed holds rates, the dollar could weaken and the exchange rate may fall.
However, the rise in global oil prices is a burden. The won is often affected by oil prices. Brent, the global benchmark, was $91 a barrel on the day, holding above the level seen just before the war ($72).