The won’s exchange rate against the dollar fell 15.41% from the start of the third quarter through Sept. 11, the largest appreciation among G20 (Group of 20) currencies. The rate closed at 1,344.1 won per dollar on Sept. 13, down from 1,350.1 a week earlier and 207.1 won below the July 1 level of 1,551.2. The won’s gain was about three times the Japanese yen’s 5.84% appreciation, while the U.S. Dollar Index was nearly unchanged, declining 0.02%. The move reflected easing concerns about U.S. monetary tightening, a narrower South Korea-U.S. interest-rate gap after a Bank of Korea rate increase, slower foreign investor stock selling and expected dollar inflows linked to SK Hynix’s American Depositary Receipt (ADR, a U.S.-traded share certificate) listing. Average daily exchange-rate volatility reached 67.8 won, close to the 2008 global financial crisis level of 68.3 won and above 2009’s 61.2 won, increasing challenges for corporate pricing and hedging. Markets are watching the possibility of a U.S. Federal Reserve rate hike on the 15th-16th as oil prices, U.S. inflation and Treasury yields rise. WTI reached $102.48 a barrel and Brent $107.63, both their highest levels since May, while the August U.S. CPI rose 0.4% month-on-month and 3.4% year-on-year and the 10-year Treasury yield approached 5%. KB Kookmin Bank economist Lee Min-hyuk said the won could weaken toward 1,360-1,370 after a U.S. rate hike, while Hana Bank senior researcher Seo Jeong-hoon expects gradual appreciation through year-end and sees a possible move toward 1,310 won.