Won-Dollar Exchange Rate Falls Below 1300 Won for First Time in Over 10 Months
The won-dollar exchange rate has fallen to around 1,300 won for the first time in about 10 and a half months. This marks a significant drop from its peak of 1,399.5 won on October 2 last year.
The decline is attributed to the US Federal Reserve's decision not to raise its key interest rate next month, as well as weak expectations for a September hike.
The Fed's decision was influenced by disappointing economic data, including lower-than-expected retail sales and consumer price index readings. Additionally, producer price index numbers fell short of market expectations.
Exporters are also contributing to the downward pressure on the dollar, as they participate in selling dollars through a process called Nego. The volume of these transactions has been steadily increasing throughout the day, mainly from semiconductor companies.