Lowest level since Oct. 4, 2024

Employees monitor stock and exchange rate movements at the Hana Bank headquarters dealing room in Jung-gu, Seoul, on Monday. [Yonhap]
Employees monitor stock and exchange rate movements at the Hana Bank headquarters dealing room in Jung-gu, Seoul, on Monday. [Yonhap]

The won-dollar exchange rate fell to the 1,330s for the first time in nearly one year and 11 months.

The won traded at 1,338.5 per dollar in the Seoul foreign exchange market Monday morning around 9:30 a.m., down 11.9 won from the previous session's closing rate. The last time the won-dollar rate was in the 1,330s was Oct. 4, 2024, when it stood at 1,331.3. Compared with the recent peak of 1,559.2 won on July 1, the currency has strengthened by more than 220 won in roughly two months.

The won advanced even as the dollar strengthened after US employment data beat market expectations.

US nonfarm payrolls rose by 162,000 in August, more than triple the consensus forecast of 53,000, according to data released Friday (local time). The stronger-than-expected figures revived expectations of a US interest rate hike this month, pushing the dollar higher. The dollar index, which measures the greenback against six major currencies, rose 0.105 to 99.098.

Demand from chipmakers converting dollar revenues into won is seen as the main driver of the won's strength. Analysts say the exchange rate could fall further if import payment demand does not recover meaningfully.

"The won is maintaining an unstoppable strengthening trend," Park Sang-hyeon, a researcher at iM Securities, said. "Alongside dollar weakness, a domestic supply-side surplus of dollars is underpinning the strong won."


kimstar@heraldcorp.com