The won-dollar exchange rate fell below 1,400 won for the first time in roughly 10 and a half months Wednesday.
The rate stood at 1,399.8 won as of 2:08 p.m. in the Seoul foreign exchange market, according to Koscom Check. It slipped below the 1,400-won threshold around noon and fell as low as 1,398.8 won during trading.
The last time the won-dollar rate traded below 1,400 won was Oct. 2, 2025, when it closed at 1,399.5 won.
Analysts attributed the move to fading expectations that the Federal Reserve will raise interest rates in September.
Recent US data — including retail sales, the consumer price index and the producer price index — all came in below market forecasts, reinforcing the view that the Fed will hold off on another benchmark interest rate hike next month.
The dollar weakened in response, widening the won's intraday gains.
Domestic supply-and-demand conditions also supported the won's advance. Chipmakers in particular have shifted away from concentrating dollar sales at month-end, instead offloading foreign currency on a more consistent basis — a pattern analysts say has become a steady downward force on the exchange rate.
"The strategy has shifted from concentrating dollar sales at month-end to consistently selling, led by chipmakers, turning what was once a seasonal supply factor into a persistent driver of won strength," Woori Bank economists Min Gyeong-won and Im Hwan-yeol said.
forest@heraldcorp.com
