![[Seoul=NEWSIS] Reporter Jeon Shin = The KOSPI closed at 6,471.17, down 5.80% from the previous day, on the 19th. A digital display board outside the Hana Bank headquarters dealing room in Jung-gu, Seoul, showed the KOSPI and won/dollar exchange rate among other indicators. The won/dollar exchange rate fell to the 1,300 won range for the first time in over 10 months. August 19, 2026.](https://thumb.mt.co.kr/cdn-cgi/image/f=avif/21/2026/08/2026081915472154210_1.jpg)
Just a short while ago, the won/dollar exchange rate was soaring in the 1,500 won range, but it has now dropped below 1,400 won for the first time in about 11 months. This comes amid expectations that the Federal Reserve System (Fed) will not raise its base rate next month, combined with selling pressure from export companies.
On the 19th, the won/dollar exchange rate closed trading at 3:30 p.m. at 1,397.7 won, down 14.1 won from the previous trading day. The weekly closing price of the won/dollar exchange rate fell into the 1,300 won range for the first time since September 29 last year (1,398.7 won).
The won/dollar exchange rate opened at 1,413.3 won on this day and widened its decline during trading. Notably, it dipped below 1,400 won to reach 1,399.0 won around 12:02 p.m., and the weekly closing price also settled in the 1,300 won range.
The won/dollar exchange rate, which had surged due to factors such as the Middle East war, peaked at 1,559.0 won on June 5 and has since shown a downward trend.
Recently, U.S. retail sales, consumer price index (CPI), and producer price index (PPI) figures have repeatedly missed market expectations, reducing the likelihood of a September rate hike by the Federal Reserve. The U.S. CPI growth rate was 3.5% in June and 3.4% in July, showing some moderation.
The dollar index, which reflects the value of the U.S. dollar against six major currencies, recorded below the 99th mark on this day, falling under 100 for the first time.
Supply and demand conditions also contributed to the won's strength. Selling pressure from export companies typically concentrates at month-end, but recently it has been accumulating frequently, increasing pressure on dollar supply.
As a result, the link between the stock market and foreign exchange market has weakened. Typically, during periods of falling stock prices, foreign investors sell stocks, leading to a weaker won and a rise in the won/dollar exchange rate. However, despite the relatively sharp decline in stock prices on this day, the won/dollar exchange rate fell.
in ECONOMY
