Intradaily Drop to the 1,370-Won Range for the First Time in 11 Months
Weekly Closing at 1,382.4 Won
Lowest Level in 13 Months on Weekly Closing Basis
On August 24, the won-dollar exchange rate fell to the 1,370 won range during trading, marking its lowest level in about 11 months since September of last year. This trend appears to have been influenced by a globally weaker dollar and the increase in export company’s foreign exchange settlements toward the end of the month.
On August 24 at the Seoul foreign exchange market, the won-dollar rate ended weekly trading (at 3:30 p.m.) at 1,382.4 won, down 4.1 won from the previous trading day.
The exchange rate started at 1,387.0 won, up 0.5 won from the previous session, but immediately turned downward after the market opened. By 11:14 a.m., it reached 1,376.5 won, a decrease of 10.0 won compared to the previous session’s weekly closing price of 1,386.5 won.
This is the lowest level in approximately 11 months, since the intraday low of 1,375.70 won recorded on September 17 last year. On a weekly closing price basis, it is the lowest since July 30, 2025 (1,383.10 won), about 13 months ago.
Over the weekend, concerns about U.S. protectionism spread risk aversion among investors, leading foreign investors to make net sales of about 3.7 trillion won in the KOSPI market. However, continued export settlement (dollar selling) by domestic exporters, especially those in semiconductors, is seen as the main background for the decline.
Anticipation is growing that large-scale shareholder returns of 90-110 trillion won by Samsung Electronics and treasury share buybacks and cancellations of 40 trillion won by SK hynix will result in dollar-to-won conversion.
Furthermore, with interim corporate tax filings coming up at the end of this month, concentrated settlement by exporters is contributing to the downward pressure on the won-dollar exchange rate.
The market notes that although the 1,380-won psychological resistance level has been broken, some factors remain before the rate can drop into the mid-1,300-won range.
Baek Seok-hyun, an economist at Shinhan Bank, said, “If the Bank of Korea raises interest rates, it could have a positive impact on lowering the exchange rate.” He added, “However, the announcement of strong U.S. economic sanctions on Iran scheduled for August 24 (local time), as well as the speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium on August 28, are variables to watch.”
The dollar index, which measures the value of the dollar against the currencies of six major countries, rose 0.049 to 98.884.
The won-yen cross rate stood at 869.72 won per 100 yen as of 3:30 p.m., the lowest since July 12, 2024 (866.88 won). During trading, it fell as low as 866.21 won. This was the first time since July 11, 2024 (864.57 won) that the rate fell below the 870 mark at 3:30 p.m.
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