Today, I noticed that the won-dollar exchange rate has finally dropped below 1400 won.

On August 19, the weekly closing price was 1397.7 won, which is a drop of 14.1 won from the previous day.

It started at 1413.3 won, went down to 1399 won around lunchtime, and ultimately closed in the 1397 won range.

It has been about 11 months since the exchange rate fell below 1400 won, which was last seen in September of last year.

A few years ago, if the dollar went over 1300 won, people would ask, "Why is the exchange rate so high?" But after getting used to the 1400 won range and even seeing 1500 won, 1397 now seems cheap.

The reason for the recent drop in the exchange rate is that there is a growing belief that the base interest rate will not be raised next month, which has weakened the dollar.

The dollar index, which shows the value of the dollar compared to major currencies, has also fallen below 100 to around 99.

Additionally, Korean export companies selling their dollars in the market has also had an impact.

Export companies earn dollars overseas but need to pay employee salaries, taxes, and operating costs in Korea, so they ultimately have to convert some of their dollars into won.

When more people sell dollars in the market, it's natural for the dollar value to decrease.

However, for someone like me living in Texas, a falling exchange rate is not necessarily good or bad.

For example, if I send 10,000 dollars to Korea, at an exchange rate of 1500 won, it's 15 million won. At 1400 won, it's 14 million won.

That's just a 100 won difference, but sending 10,000 dollars results in a 1 million won difference.

The same goes for traveling to Korea. If the dollar is strong, it's good for someone coming from the U.S. Even a meal costing 100,000 won feels relatively cheap when paid in dollars.

On the other hand, families sending tuition fees from Korea to the U.S. might feel a bit relieved.

That said, just because the rate hit 1397 today doesn't mean it will continue to drop to 1300 or 1200 won.

The exchange rate fluctuates with just a word from the U.S. regarding interest rates, as well as based on inflation, oil prices, and stock market sentiment.

Still, it's nice to see the first digit of the exchange rate change to 13 after a long time. Now I can calculate 100 dollars as 140,000 won.