Won-Dollar Exchange Rate Approaches 1180 Won Ahead of Chuseok Holiday (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] On the 17th, the won-dollar exchange rate showed an upward trend, approaching 1180 won, marking the highest level in a month. This is due to a preference for safe assets ahead of the Chuseok holiday and the U.S. Federal Open Market Committee (FOMC) meeting.

At 10:04 a.m. in the Seoul foreign exchange market, the won-dollar exchange rate was trading at 1178.73 won. The rate started trading at 1175.5 won, up 3.7 won from the previous day's closing price, and has been moving in the high 1170 won range. The intraday high is the highest level since August 20 (1181.1 won).

Although U.S. retail sales for August, announced the previous day, showed a surprising increase, volatility in Asian markets has expanded due to bankruptcy rumors of China's real estate giant Evergrande (恒大·Evergrande) Group and adjustments in the Hong Kong stock market, intensifying risk-averse sentiment. On the same day, the KOSPI opened at 3127.75, down 2.34 points (0.07%) from the previous day.