The won rose approximately 15% against the dollar in the third quarter, showing the strongest performance among the currencies of the 20 major economies. The won-dollar exchange rate was reported at KRW 1,344.1 at the close on the 13th and reached a high of KRW 1,349.9 on the 11th, as the won rose sharply while the dollar remained largely unchanged.
The won rose more than 15% against the dollar in the third quarter, showing a performance that stood out among major currencies. The won-dollar exchange rate in the Seoul foreign exchange market closed at KRW 1,344.1 on the 13th, down KRW 6 from the previous week. It rose to KRW 1,349.9 on the 11th, reaching a high.
The factors cited as contributing to the move included dollar selling by exporters, particularly semiconductor companies, a sharp decline in foreign investors' net stock selling, and a narrowing of the interest-rate gap between South Korea and the United States. Mun Jeong-hyeon (ムン・ジョンヒョン) of KB explained that foreign investors' net stock selling had declined significantly.
Market attention has shifted to the direction of U.S. monetary policy ahead of the Federal Reserve's FOMC meeting. Some analysts believe that the possibility of further Fed rate hikes could influence exchange-rate movements in the short term.
Some analysts also expect the won's appreciation to continue over the medium to long term, with forecasts calling for a level of around ¥1,310 by year-end and a range of KRW 1,290 to KRW 1,380 during the year. Dollar selling by semiconductor exporters could act as a factor restraining the won's appreciation.