Renminbi Correlation... Won-Dollar Exchange Rate Closes Down 2.9 Won at 1176.1 Won

[Asia Economy Reporter Kim Eun-byeol] On the 16th, the won-dollar exchange rate fell to the mid-1170 won range in the Seoul foreign exchange market.

On that day, the exchange rate closed at 1,176.1 won per dollar, down 2.9 won from the previous day. The rate started at 1,180.5 won, up 1.5 won, and rose to 1,181.5 won in the early session, but began to decline from around 10 a.m., showing a synchronized movement with the yuan.

The decline in the exchange rate that day was largely attributed to the strengthening of the yuan. The People's Bank of China announced the midpoint rate, which serves as the reference exchange rate, at 6.7825 yuan per dollar, down 0.58% from the previous day. This is the lowest level since May last year.

As China's economy showed signs of recovery from the impact of the novel coronavirus (COVID-19), the yuan's strength stood out in the global financial market. Seungji Jeon, a researcher at Samsung Futures, explained, "Emerging currencies including the yuan showed strength, and continued net buying by foreigners acted as a factor in the won-dollar decline."

This content was produced with the assistance of AI translation services.