The won-dollar exchange rate stood at 1,383.7 won at 9 a.m. on the 27th. That was down 1.1 won (0.07%) from the prior trading week's closing price.
There is an outlook that the rate could rise slightly today. The U.S. personal consumption expenditures (PCE) index for July rose 3.7% from a year earlier, coming in higher than the forecast of 3.8%. If so, the United States could be more likely to raise interest rates to tame inflation, which could strengthen the dollar.
As the rate falls quickly, there is also a high chance that buying interest to purchase dollars at low prices will expand. As the domestic stock market undergoes a correction, the increase in Korean retail investors trading U.S. stocks is also weighing on the exchange rate.
However, some say the rise in the rate will not be large. This is because at the end of each month, major exporting corporations tend to sell dollars they hold. Min Kyung-won of Woori Bank said, "As the rate decline continues, there is psychological pressure for further declines," adding, "With the seasonal factor of month-end overlapping, dollar selling volume is likely to expand."
The Bank of Korea's base rate decision is also expected to affect the exchange rate. While experts are divided on whether the Bank of Korea will raise rates in August following July, the dominant view is that there will be an additional hike within the year. If rates rise, the won could strengthen and the exchange rate could fall.