Won-Dollar exchange rate falls below 1110 won... Watching the direction of the Yuan

[Asia Economy Reporter Jang Sehee] On the 1st, the KRW-USD exchange rate started lower.

At the Seoul foreign exchange market on this day, the KRW-USD exchange rate was 1.7 won lower than the previous day's closing price, showing 1109.2 won per dollar as of 9:07 AM.

The exchange rate started at 1107.3 won, down 3.6 won reflecting the overnight dollar weakness, and continued to stay below 1110 won. The dollar showed a weak trend against major currencies as overall risk appetite was maintained while the US stock market was closed.

The possibility of a reversal in the recent yuan strength, which has been the main factor in the exchange rate decline, is supporting the downside.

This is because the People's Bank of China took a policy measure by raising the foreign currency deposit reserve ratio for the first time in 14 years, putting a brake on the yuan's strength trend. It is evaluated as a strong policy signal from China that it will not tolerate a rapid rise in the yuan's value.

At the same time, the KRW-JPY revaluation rate was 1013.11 won per 100 yen. This is 0.81 won higher than the reference price at 3:30 PM the previous day (1012.3 won).

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