Won Gains on Soft U.S. Inflation Data and Fed Hike Expectations

The South Korean won experienced a slight gain against the US dollar on Friday after the release of better-than-expected US inflation data. The data showed that the U.S. Producer Price Index gained 4.7 percent on year in July, down from a 5.5 percent rise in June.

This reduction in market expectations of a rate hike by the Federal Reserve led to a slight increase in the value of the won against the dollar. The won was quoted at 1,418.3 won per dollar at 3:30 p.m., up 1.1 won from the previous day's close.

For the sixth consecutive trading session, the won has traded within a narrow range of around 1,140 per dollar, marking its strongest level since early October last year.