Won-Dollar Exchange Rate Turns Upward... Intraday 1391.9 Won

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] The won-dollar exchange rate, which started off declining, reversed to an upward trend during the session and rose back to the 1390 won level.

As of 11:28 a.m. on the 19th in the Seoul foreign exchange market, the won-dollar exchange rate surged to 1391.9 won.

On that day, the exchange rate opened at 1385.0 won, down 3.0 won from the previous trading day, moving around the mid-1380 won range in the early session before turning to an upward trend.

When the exchange rate threatened the 1400 won mark, the foreign exchange authorities calmed speculative sentiment by moving from verbal intervention on the 15th and 16th to actual intervention. They demonstrated their commitment to defending the exchange rate by requesting foreign exchange banks conducting dollar transactions to report in real time the major dollar buying and selling status and each bank’s foreign exchange-related positions.

However, ahead of the U.S. Federal Reserve’s September Federal Open Market Committee (FOMC) meeting scheduled for the 20th and 21st, concerns over high-intensity tightening have spread, making it insufficient to stop the upward trend of the exchange rate.

Joo Won, Head of Economic Research at Hyundai Research Institute, said, “The exchange rate started off declining due to the foreign exchange authorities’ intervention alert, but ahead of the upcoming FOMC, concerns over U.S. tightening have increased, pushing the exchange rate higher.” He added, “Depending on the strength of the Fed’s rate hike, the dollar’s strength could intensify further. Although the foreign exchange authorities are trying to prevent the rate from breaking 1400 won, there is a high possibility it could temporarily breach that level.”

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