The won-dollar exchange rate against the U.S. dollar was 1,385.4 won at 9 a.m. on the 24th. It fell 1.1 won from the previous transaction day's weekly closing price (1,386.5 won).
The won-dollar exchange rate dropped from the 1,400-won level to the 1,300-won level on the 19th and has maintained this level for three consecutive transaction days. This follows expectations that the Federal Reserve (Fed) will not raise rates at the Federal Open Market Committee (FOMC) meeting next month. When the Fed holds rates, demand for investment in U.S. dollar asset tends to fall, and the won tends to strengthen (a decline in the won-dollar exchange rate).
The fact that domestic exporters sold dollars also fueled the decline in the won-dollar exchange rate. According to lawmaker Kim Nam-joon's office of the Democratic Party of Korea on the National Assembly Strategy and Finance Committee, spot and forward dollar sales by nonfinancial private companies in the second quarter of this year totaled $263.59 billion. That is up 71.5% from the second quarter of last year ($153.67 billion).
Park Sang-hyun, a researcher at iM Securities, said, "Whether Chair Kevin Warsh, who has kept silent on the Fed's rate policy, gives a hint on rate policy in his Jackson Hole speech will affect the dollar's trajectory."