Dollar-won rate falls into the 1,370s: what a 13-month low means for daily economics
The dollar-won exchange rate moved down into the 1,370-won range on August 24, touching its lowest level since last autumn. Yonhap reported that the intraday low reached 1,376.50 won in the morning and that the 3:30 p.m. reference rate also fell from the previous trading day. The number alone suggests a stronger won, but in daily economics it can affect import prices, overseas travel costs, exporters' won-denominated earnings and foreign capital flows in different ways.
Key summary
- The dollar-won rate fell into the 1,370-won range intraday, reaching a 13-month low.
- Yonhap reported the 3:30 p.m. reference rate at 1,382.4 won.
- Exporter dollar sales and weaker buying sentiment after the 1,400-won level broke were cited as background factors.
- A lower exchange rate may ease import and travel costs, but it can pressure exporters' won-converted earnings.
Why the number alone is not enough
When the exchange rate falls, imported raw materials and consumer goods can become less burdensome. Households planning overseas travel or study abroad may also feel some relief. On the other hand, exporters that earn revenue in dollars can face lower won-denominated sales when they convert that revenue. The same exchange-rate decline can feel different to individuals, importers, exporters and financial markets, so it is hard to label it simply good or bad.
Confirmed facts
- Yonhap reported that the dollar-won rate fell as low as 1,376.50 won intraday, a 13-month low.
- The 3:30 p.m. reference rate was 1,382.4 won, down 4.1 won from the same reference rate on the previous trading day.
- Money Today and others discussed exporter dollar selling and month-end corporate flows as key background factors.
- Chosunbiz noted that easing high exchange-rate pressure could also affect duty-free retailers and expectations for domestic consumer spending.
Effects on daily economics
| Area | Key point | What to check |
|---|---|---|
| Overseas travel | Possible relief in dollar exchange burden | Fees and actual posted exchange rates |
| Import prices | Potential easing of raw-material and consumer-goods pressure | Commodity prices and shipping costs |
| Exporters | Dollar revenue converts into fewer won | Hedging and pricing power |
| Financial markets | Stronger-won sentiment can affect foreign flows | Sustainability of stock and bond flows |
What can be misunderstood
A lower exchange rate does not automatically mean consumer prices will fall visibly right away. Companies may already have purchased inputs at higher rates, while distribution costs, labor costs and global commodity prices move separately. It is also not yet clear whether won strength will persist or whether this move reflects short-term settlement flows. For individuals planning currency exchange or overseas payments, fees, split exchange and the rate on the actual payment date matter more than chasing today’s intraday low.
Next checks
- Watch whether the exchange rate stabilizes around 1,380 won or moves back toward 1,400 won.
- U.S. rate expectations, the dollar index and Korea's export data also need to move in a consistent direction.
- It may take time before lower exchange rates are reflected in consumer prices, travel products and imported goods.
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