Won-dollar rate hits two-year low of 1323.1 on 26 Oct, then rises above 1330 by 28 Oct

The won-dollar exchange rate closed at 1323.1 won on 26 October in Seoul daytime trading, down 1.5 won from the previous session, according to Yonhap, Newsis, Chosun Ilbo, Seoul Economic Daily, Dong-A Ilbo and Seoul Shinmun. Asia Economy's headline said the rate rose 1.5 won to the same level. Newsis, Dong-A Ilbo and Seoul Shinmun said it was the lowest daytime close since 2 October 2024, when it was 1319.3 won. Seoul Economic Daily reported that the rate fell as low as 1320.6 won during the day, below the year's previous low of 1321.2 won set in night trading on 22 October. [ 5 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 ]

Outlets named dollar supply from chip exports as the main force behind the fall. Newsis said dollars sold by semiconductor companies had been leading the decline in the second half of the year, and Seoul Economic Daily added a weaker dollar after a fall in the yen-dollar rate, month-end sales by exporters and dollar selling by offshore players. Seoul Economic Daily said buying at lows and importer settlement demand limited the fall, and that caution over possible smoothing operations by the authorities also supported the lower end. Factors pushing the rate up were Middle East tension, higher oil prices and foreign selling of Korean shares. According to Seoul Economic Daily, a supply-heavy dollar balance offset them. [ 1 , 10 , 11 ]

Chosun Ilbo reported that Brent crude futures rose 3.13 percent to 116.7 dollars a barrel on 25 October, local time, after President Donald Trump hinted at air strikes on Iran. Woori Bank researcher Min Kyung-won said exporters' dollar selling was unlikely to change much unless foreign investors made large-scale remittances out of Korea's stock market, as in the first half of the year. [ 4 , 11 ]

Seoul Economic Daily and Seoul Shinmun reported on Bank of Korea Governor Shin Hyun-song's remarks about the won. Shin said at the 22 October press conference that the BIS effective rate was about 89 at the end of August, below the average of 101, so the won could still be called weak. Dong-A Ilbo and Seoul Shinmun said the rate had fallen from the year's high of 1555.8 won on 2 July, by 232.7 won or about 15 percent. They said a lower rate reduces import prices but cuts the won-converted sales of exporters such as chip and car makers. Seoul Shinmun said some forecast the late 1200s by year-end or early next year if chip exports stay strong, while Woori Bank economist Park Hyung-joong said the mid-1300s fit the fundamentals. [ 10 , 13 , 14 ]

The rate closed at 1323.7 won on 27 October, up 0.6 won. On 28 October it rose 14.0 won to 1337.7 won, ending the run of closes in the 1320s. Asia Economy said it reached 1339.1 won at 11:36 and 1342.3 won at 13:45, and linked the rise to a growing chance of a hawkish hold by the Fed. Newsis said importer settlement and residents' overseas stock investment demand pushed the rate up despite steady dollar selling by chip firms. [ 16 , 17 , 22 , 23 , 26 , 27 , 28 ]

On 29 October the rate closed at 1336.8 won, down 0.9 won. Newsis reported that the Fed had held its rate at 3.75 to 4.00 percent on 28 October, local time, as markets expected. It said 10 of 12 voting members agreed, while Lisa Cook and Cleveland Fed president Beth Hammack voted for a further 0.25 percentage point rise. Newsis said buying at lows had lifted the rate out of its 1320s range to the mid-1330s. [ 29 , 30 , 34 ]