Won-Dollar Exchange Rate Surpasses 1,380 Won... First Time in 13 Years and 5 Months (Comprehensive)

On the 7th, when the won-dollar exchange rate surpassed 1,380 won for the first time in 13 years and 5 months, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Seo So-jung] The won-dollar exchange rate has surpassed 1,380 won for the first time in 13 years and 5 months, showing an unstoppable upward trend.

According to the Seoul foreign exchange market on the 7th, the exchange rate opened at 1,377.0 won, up 5.3 won from the previous trading day, and soared to 1,383.0 won around 9:17 a.m., breaking the highest point for six consecutive trading days.

The won-dollar exchange rate entered the 1,380 won range just two days after surpassing 1,370 won on the 5th.

The exchange rate exceeding 1,380 won is the first time since April 1, 2009 (high of 1,392.0 won) during the financial crisis, marking 13 years and 5 months.

The strong dollar phenomenon is intensifying as expectations grow that the U.S. central bank, the Federal Reserve (Fed), will take a 'giant step' by raising the benchmark interest rate by 0.75 percentage points at this month's Federal Open Market Committee (FOMC) regular meeting.

The New York stock market, which was closed the previous day due to Labor Day, showed a decline overnight. The Dow Jones Industrial Average and the Standard & Poor's (S&P) 500 index fell by 0.55% and 0.41%, respectively, while the Nasdaq index dropped 0.74%. The dollar index, which shows the value of the dollar against six major currencies, also rose back to around 110.3.

In the foreign exchange market, as the strong dollar trend is expected to continue this month, the dominant view is that the exchange rate will soon surpass 1,400 won. Moon Hong-chul, a researcher at DB Financial Investment, said, "Not only the Fed's interest rate hikes but also the rapid liquidity reduction in September could push the exchange rate past 1,400 won," adding, "The weakness of the yuan is also a factor putting upward pressure on the exchange rate."

Jeon Gyu-yeon, a researcher at Hana Securities, also said, "Until the FOMC meeting this month, the foreign exchange market will watch the Fed's tightening stance and maintain the strong dollar trend, and the sluggish European economy is also expected to induce dollar strength," adding, "It is necessary to keep the upper limit of the exchange rate open to the 1,400 won range."

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