Won-Dollar Plunges to 1-Year Low Despite Strong US Jobs Report
The won-dollar exchange rate plummeted to its lowest level in over a year and eleven months, despite strong U.S. jobs data that initially boosted expectations of further Federal Reserve rate hikes.
According to finance.biggo.com, the exchange rate dropped into the 1,330 range for the first time since October 4, 2024, with an intraday low of 1,334.7 won around 9:59 a.m. on the 7th.
The strong U.S. jobs report, which showed an increase of 162,000 nonfarm payrolls in August, raised the probability of rate hikes to around 60%. However, this boost was short-lived as U.S. long-term yields quickly retraced after their initial spike, causing dollar-bullish pressure to overwhelm.
The yen's strength and dollar-selling by South Korean exporters also contributed to the decline in the exchange rate. Analysts note that steady dollar supply from exporters converting robust semiconductor export revenues into won has maintained a dollar-supply surplus.