The won-dollar exchange rate stood at 1,381.8 won as of 9 a.m. on the 26th. That was down 4.3 won (0.31%) from the previous trading day's weekly transaction closing price.
There are forecasts that the rate could fall into the 1,370-won range today. Overnight, U.S. Government Bonds yields and international oil prices fell while stocks rose. If so, risk appetite could recover, causing the safe-haven dollar to weaken (a lower exchange rate).
The yield on the U.S. 10-year Government Bonds, the global benchmark rate, fell 0.07 percentage point to 4.63% on Aug. 25. Brent crude, the global oil benchmark, fell 3.9% to $88.58 per barrel at the close of trading. The Standard & Poor's (S&P) 500 index rose 0.32%, and the Nasdaq composite index climbed 0.66%.
Earlier, the U.S. government decided to return diplomats to its embassies in the Middle East. There was also news that Iran and Oman are discussing opening a temporary joint shipping lane related to the Strait of Hormuz.
However, some say the decline in the rate may not be large if dollar buying by importers that procure raw materials overseas expands. In other words, demand to buy dollars at low prices is increasing. Min Kyung-won of Woori Bank said, "As the exchange rate has plunged more than 100 won in about a month, importers that need to secure dollar firepower have more incentive to stock up settlement volumes early."