KRW/USD Exchange Rate Falls to the 1,300-Won Range Intraday for the First Time in 10 and a Half Months

Higher Probability of U.S. Rate Freeze

Exporter Dollar Sales Also Weigh on Exchange Rate

The KRW/USD exchange rate has dropped back to the 1,300-won range for the first time in about 10 months since October last year.

On the 19th, the KOSPI, KOSDAQ, and KRW/USD exchange rate were displayed in the dealing room of Hana Bank Headquarters in Jung-gu, Seoul. August 19, 2026. Photo by Cho Yongjun

On the 19th at the Seoul foreign exchange market, the KRW/USD rate fell to as low as 1,398.8 won around 12 p.m., before trading at 1,400.8 won as of 1:32 p.m.

This is the first time the rate has fallen below 1,400 won in about ten and a half months since October 2 of last year (1,399.5 won).

The recent drop in the KRW/USD exchange rate is attributed to a decline in the value of the dollar, as market expectations for a U.S. Federal Reserve interest rate hike next month have weakened. Recently released U.S. retail sales, Consumer Price Index (CPI), and Producer Price Index (PPI) figures all came in below market expectations, leading to diminished anticipation for a rate hike in September.

In addition, exporters are also driving the downward trend by selling dollars in the market. While dollar selling volumes (negotiation volumes) typically increased at the end of each month in the past, it is now observed that semiconductor companies in particular have been making continuous dollar sales throughout the month, further strengthening the Korean won.

This content was produced with the assistance of AI translation services.