Won Hits Near 2-Year Low as Exporters' Dollar Selling Weighs on Currency

The Korean won has fallen to its lowest level in nearly two years, hitting the 1,330 range against the U.S. dollar on September 7.

This decline is notable because it occurred despite a broader trend of dollar strength, with the U.S. nonfarm payrolls for August increasing by 162,000 from the previous month, more than triple the market forecast of 53,000.

Normally, strong U.S. employment data would lift the dollar and push the won-dollar exchange rate higher, but in this case, heavy dollar selling by exporters has created stronger downward pressure on the exchange rate.

Market participants said key psychological support levels for the exchange rate have been breached, making it more vulnerable to further declines unless settlement demand from importers shows a clear recovery.