Won Steadies Against Dollar, Despite Semiconductor-Driven Selling Pressure

The Korean won stabilized against the US dollar on August 8, despite a decline in the previous day's closing price. The won-dollar exchange rate was at 1,343 won at 9:00 AM, falling by 2.5 won (0.18%) from the previous day's closing price. However, after dipping to 1,340 won around 9:40 AM, the rate rebounded to 1,341 won by 9:56 AM.

Analysts predict that the rate may decline further on the day due to increased dollar selling by major corporations, fueled by robust semiconductor exports and growing order backlogs for shipbuilders and heavy industry companies. If this trend continues, it could lead to a strengthening of the won and a decrease in the exchange rate.

The strength of the Japanese yen is also expected to impact the rate, as the won and yen tend to move in tandem. The yen-dollar rate was at 153.7 yen, down 0.45% from the previous day's level of 154.4 yen.

However, due to the rapid decline in the exchange rate, demand for dollars may increase, limiting any further decline in the rate. Additionally, some experts suggest that the National Pension Service's suspension of currency hedging is contributing to a slower pace of rate decline, as it reflects a reduced downward pressure on the won.