Won Slumps to 1-Year Low Despite Bullish US Jobs Data

The South Korean won continued its downward trend against the dollar on September 7, falling to levels not seen in over a year. Despite strong U.S. jobs data showing an increase of 162,000 in August, far exceeding market expectations, the won-dollar rate plummeted to an intraday low of 1,334.7 at around 9:59 a.m.

This marked the first time the currency had traded in the 1,330s since October 4, 2024, when it reached 1,331.3. The won's decline was attributed to a combination of factors, including dollar selling by South Korean exporters and dollar supply tied to foreign purchases of local stocks.

The yen's strengthening against the dollar also contributed to the won's appreciation. As the yen strengthened to the 155 level against the dollar on September 7, buying flowed in as caution grew that Japanese authorities could intervene in the market to stem the currency's weakness.