The won-dollar exchange rate closed at 1,411.80 won in Seoul on August 18, down 1.20 won from 1,413.00 and its lowest 3:30 p.m. benchmark since October 2 last year, as expectations for a Federal Reserve rate hold in September, exporter dollar settlements and foreign buying of KOSPI shares supported the Korean currency. The rate opened at 1,417.00 won and fell to 1,408.00 around 12:06 p.m., helped by U.S. July retail sales data showing a 0.6% month-on-month drop against a market forecast for a 0.1% increase, while foreign investors bought a net 91.4 billion won of KOSPI stocks for a fifth straight session. The move partly reversed after the KOSPI swung from an early gain of more than 2% to close at 6,869.83, down 108.11 points or 1.55%, and the KOSDAQ slid 3.52%, prompting afternoon dollar buying as risk appetite weakened. Analysts say the near-term outlook is being pulled between domestic support for the won and external headwinds including Middle East tensions, U.S. Treasury yields (returns on government bonds) above 5.31% on the 30-year note, and uncertainty over how exchange-rate moves will affect Bank of Korea policy, with Barclays arguing the currency has become more important to the central bank's growth and stability trade-offs.