On the 13th, data showed that the won's third-quarter appreciation rate was the highest among major currencies.
According to the foreign exchange market that day, the won-dollar exchange rate (won-dollar rate) closed at 1,559.9 won on July 1 and 1,344.1 won on the 11th of this month. During this period, the value of the won against the dollar rose 15.41%.
That is about three times the appreciation rate of the Japanese yen (5.84%). It also outpaced the Australian dollar (4%), the Canadian dollar (2.48%), and the euro (1.93%). In contrast, the dollar index, which shows the value of the dollar against the currencies of six major countries, fell 0.02%.
Moon Daun, a researcher at Korea Investment & Securities Co., said, "Aggressive dollar selling led by exporters and dollar weakness driven by a sharp yen rally combined to break the 1,340-won floor for the exchange rate." As the won appreciated rapidly, exchange-rate volatility also widened. The average exchange-rate fluctuation in the third quarter is 67.8 won. That is similar to 2008 (68.3 won), during the financial crisis.
The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve, to be held on the 15th–16th, is an immediate factor that could affect the exchange rate. According to CME FedWatch at the Chicago Mercantile Exchange (CME), which indicates the volatility of Fed rate expectations, investors see an 87% chance that the Fed will raise the benchmark rate at this FOMC.
In the market, some say that if the Fed raises the benchmark rate, dollar strength will push the exchange rate back toward the 1,400-won level, while others note that the medium- to long-term trend of a stronger won will not be broken.