Korean Won Hits 14-Month Low at 1,360 as Exporter Dollar Sales Drive Currency Strength

The Quick Take

• Korean won touched 1,360 per dollar intraday — its lowest level since July 2025 — driven by large exporter dollar sales
• USD/KRW closed at 1,370.4 as sustained export-sector dollar selling supply outpaced demand
• Fed Chair Kevin Walsh's hawkish Jackson Hole comments briefly strengthened the dollar before markets stabilised

The Korean won weakened to 1,360 per dollar during intraday trading on September 1 — the lowest level against the US dollar since July 7, 2025 — before closing at 1,370.4 as export-sector dollar selling maintained downward pressure on the USD/KRW pair. The move reflected sustained dollar supply from Korean export companies, which have been converting foreign currency revenues at current exchange rate levels, creating a natural demand offset against global dollar strength. The won's intraday strength came despite a broadly stronger dollar environment globally, suggesting South Korea's export dollar supply is sufficient to push against the prevailing market direction on moderate-volume sessions.

The session's dynamics reflect a key tension in South Korea's currency market: export-led dollar selling — typically concentrated in large conglomerates like Samsung Electronics, Hyundai Motor, and LG Electronics, which receive payment predominantly in dollars — competes against global risk-off USD demand. The won's intraday dip to 1,360 would be positive for Korean import costs, reducing inflationary pass-through from dollar-priced commodities including energy, which South Korea imports extensively. Korean technology and auto exporters, however, benefit from won weakness through improved competitiveness of their dollar-denominated export pricing — an internal corporate hedge against the currency's direction that gives management multiple angles of comfort.

The critical forward signal is whether Fed Chair Kevin Walsh's hawkish stance — emphasizing price stability as the primary focus at Jackson Hole — translates into a concrete September rate hike decision. If the Fed raises rates in September, dollar strength would reassert broadly and USD/KRW could return toward the 1,380-1,400 range, compressing the won's recent strength. Korea's Bank of Korea monetary policy meeting and any FX intervention commentary will be closely watched: with reserves ample but political sensitivity around won weakness on import inflation, intervention at or above 1,400 remains a live policy option for the central bank.

Synthesized from 2 sources.