South Korean won rises 0.65% to 1,350.4 per dollar

  • South Korean won strengthened 8.9 won against the US dollar to close at 1,350.4 on the 4th.
  • 1,349.5 marked the won’s first intraday move into the 1,340 range in approximately 14 months.
  • Japanese yen strength, weaker US labor data and exporter dollar sales supported the won’s advance.

The South Korean won strengthened 8.9 won, or 0.65%, against the US dollar on the 4th to close at 1,350.4, its lowest closing level since June 30 of last year. The currency touched 1,349.5 intraday, entering the 1,340-won range for the first time in about 14 months, and has fallen 20 won across three consecutive sessions. Yen strength amid renewed concern about Japanese foreign-exchange intervention, softer US employment data, dovish Federal Reserve signals, exporter dollar sales and foreign buying of South Korean equities all supported the won. Import settlement demand, bargain hunting and currency conversions for overseas stock investments provided downside support for the dollar. Markets are now focused on the US August nonfarm payrolls report, which could influence expectations for further Federal Reserve rate increases.

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