The won strengthened against the dollar in Seoul on the 26th, closing at 1,384.8 per dollar, down 1.3 won from the previous session. The exchange rate briefly fell to 1,381.5 before bargain hunting narrowed the decline and kept trading within the 1,380s. Month-end dollar selling by exporters, led by major semiconductor companies, was the main factor weighing on the dollar, while global dollar strength and foreign equity outflows limited the won's gains. Foreign investors sold a net 105.2 billion won ($76.0 million) of South Korean shares even as the KOSPI rose 0.97%, extending their selling streak to four sessions. They had sold a net 3.82 trillion won ($2.8 billion) on the 25th, the second consecutive session with net selling above 3 trillion won ($2.2 billion). Markets are focused on the Bank of Korea Monetary Policy Board's rate decision on the 27th and the U.S. July personal consumption expenditures (PCE) price index. A second consecutive rate increase could prompt a partial unwinding of dollar-selling positions after the won's rapid appreciation. Barclays also said reforms involving the Future Response Fund, local-government transfers and education grants could be broader than initially expected, making a sharp decline in government bond issuance less likely.