US Treasury Yield Rise Strengthens Dollar... Exchange Rate Trades in High 1120 Won Range (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] Overnight, U.S. Treasury yields turned upward, and the dollar strengthened, leading to a rise in the won-dollar exchange rate at the start of trading on the 4th.

At 10:32 a.m. in the Seoul foreign exchange market, the won-dollar exchange rate was trading at 1,125.48 won per dollar, up 5.18 won from the previous day's closing price.

The exchange rate started at 1,127.0 won per dollar, up 6.7 won, then rose to the 1,128 won level during the session before falling back to the 1,125 won level.

Overnight, U.S. Treasury yields turned upward, strengthening the global dollar and putting upward pressure on the won-dollar exchange rate. The 10-year U.S. Treasury yield surged to 1.495% during the session before closing at 1.479%.

As U.S. Treasury yields rebounded, the Nasdaq index, centered on tech stocks, plunged 2.7% in the New York stock market, damaging investor sentiment and causing a global dollar strength. Min Kyungwon, a researcher at Woori Bank, said, "The won-dollar exchange rate is expected to settle in the mid-1120 won range, reflecting the deterioration of risk appetite due to the resumption of the rise in U.S. Treasury yields and the strengthening of the dollar."

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