The Korean won came under upward pressure against the dollar as exporters sold dollars at month-end and foreign investors bought local stocks, but the pair held flat in the low-to-mid 1,320 range amid caution ahead of the U.S. Federal Reserve's rate decision.
The won closed daytime trading in the Seoul foreign exchange market at 1,323.7 per dollar on the 27th, 0.6 won weaker than the previous session. The pair opened at 1,325.0, climbed to 1,326.5 around 9 a.m., then pared gains and turned lower to 1,322.8. It moved in the low-to-mid 1,320 range thereafter.
Downward pressure on the dollar-won rate built as semiconductor exporters brought in month-end dollar sales and foreign buying strengthened in the domestic stock market.
Third-quarter real gross domestic product growth, released by the Bank of Korea the same day, came in at 1.0% from the previous quarter, also supporting the won. That is more than triple the 0.3% the central bank projected in August. Strong exports driven by a semiconductor boom and rising facility investment led the growth.
Still, the perception that the rate had reached a floor after its rapid decline, the possibility that foreign exchange authorities would slow the pace, and caution ahead of the U.S. Federal Open Market Committee meeting limited further declines.
Meanwhile, the dollar index (DXY), which tracks the dollar against six major currencies, stood at 102.099 around 3:30 p.m. the same day, up slightly from the previous session. The won-yen cross rate fell 4.09 won to 838.63 won per 100 yen.
