Due to Weak US Economic Indicators, KRW-USD Exchange Rate Falls... Late 1320 Won Range

The won-dollar exchange rate fell more than 10 won in the early session and is fluctuating in the high 1320 won range.

According to the Seoul foreign exchange market on the 24th, as of 9:10 a.m., the won-dollar exchange rate was 1,329.2 won, down 10.5 won from the previous day.

The exchange rate opened at 1,329.0 won, down 10.7 won from the previous day, and has been moving in the high 1320 won range. This is because news of sluggish U.S. manufacturing and service sectors increased expectations for the end of U.S. interest rate hikes, and risk appetite partially recovered.

The August Manufacturing Purchasing Managers' Index (PMI) released by S&P Global was provisionally recorded at 47.0, the lowest level in two months. This figure was below the market expectation of 49. The preliminary service PMI was 51.0, marking the lowest level in six months. This also fell short of the market expectation of 52.5.

Oh Chang-seop, a researcher at Hyundai Motor Securities, said, "With the market’s attention focused on Federal Reserve Chair Jerome Powell’s Jackson Hole speech on the 25th, the weak U.S. economic indicators are a factor lowering expectations for interest rate hikes," adding, "News that the U.S. Department of Labor revised last year’s nonfarm payroll figures downward also affected market sentiment, leading to a decline in the exchange rate."

Dealers are conducting foreign exchange operations in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Huh Younghan younghan@

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