The Korean won strengthened against the U.S. dollar on the 14th, with the dollar-won exchange rate closing at 1,418.3 won, down 1.1 won from the previous session, as softer-than-expected U.S. producer inflation reduced pressure for further Federal Reserve rate hikes and foreign investors kept buying local equities. The rate opened at 1,415.5 won, rose to 1,420.5 won early in the session, then reversed lower and fell into the low 1,410 won range in the morning, at one point widening its drop to more than 6 won from the previous day before bargain hunting trimmed most of the decline in the afternoon. July U.S. producer price index data showed no monthly increase versus a market forecast for a 0.2% rise, while the year-on-year gain came in at 4.7% against an expected 4.9%, and core PPI rose 0.2% from a month earlier versus a 0.3% forecast. The softer reading, following the earlier July consumer price index, eased concerns about Fed tightening and pushed the dollar index lower to 99.84 at 3:34 p.m. from 99.96 a day earlier. Domestic equity inflows added to won support, with the KOSPI closing at 6,977.94, up 164.60 points, or 2.42%, as foreign investors posted 3.05 trillion won in net buying and extended their buying streak to a fourth straight session. The index climbed as high as 7,010.86 during the day, briefly recovering the 7,000 level. Custody-related dollar selling tied to foreign stock purchases and exporter dollar sales led by semiconductor companies also supported the won.