Won-Dollar Exchange Rate Surpasses '1340 Won' for the First Time in 13 Years and 4 Months

The dealing room of Hana Bank headquarters in Myeongdong, Seoul, on the 22nd [Image source=Yonhap News]

The won-dollar exchange rate surpassed the 1,340 won level on the 22nd.

According to the Seoul foreign exchange market, the won-dollar exchange rate recorded 1,340.0 won per dollar at 1:51 p.m. on the day, up 14.1 won from the previous trading day's closing price.

The won-dollar exchange rate started trading at 1,335.5 won, up 9.6 won from the previous trading day, then rose to the 1,338 won range in the early session, fluctuating around the 1,330 won level before breaking through 1,340 won in the afternoon.

This is the first time in about 13 years and 4 months since the exchange rate surpassed 1,340 won, which last occurred on April 29, 2009, during the financial crisis (high of 1,357.5 won).

The recent sharp rise in the exchange rate is due to growing expectations that the U.S. Federal Reserve will continue its interest rate hike policy for the time being, following the release of the minutes of the July Federal Open Market Committee (FOMC) meeting on the 17th (local time).

The weakness of major currencies such as the yuan and euro, along with diminished expectations for improvement in the domestic trade balance, also fueled the dollar's strength.

The exchange rate rose above the 1,300 won level on June 23, then broke through 1,310 won and 1,320 won on the 6th and 15th of last month, respectively, and on this day, it consecutively surpassed 1,330 won and 1,340 won.

This content was produced with the assistance of AI translation services.