Exchange Rate on the 29th Hits Intraday High Again...Rises for 7 Consecutive Trading Days (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] The won-dollar exchange rate hit a new intraday high again due to the global dollar strength and the sharp rise in U.S. Treasury yields. The won-dollar exchange rate has been rising for seven consecutive trading days.

On the 29th at the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,188.0 won, up 3.6 won from the previous day, and was trading at 1,186.22 won as of 9:32 a.m. During the session, it rose to 1,188.50 won, surpassing the previous intraday high of 1,186.40 won set on the 23rd. This is the highest level since the intraday high of 1,189.30 won on September 11 last year.

Concerns over inflation and the prospect that the U.S. Federal Reserve (Fed) may implement tapering (asset purchase reduction) in November have become clearer, pushing U.S. Treasury yields to their highest level in three months, which in turn drove the won-dollar exchange rate higher. On the 28th (local time), the 10-year U.S. Treasury yield rose by 0.009 percentage points from the previous day to 1.55% annually. It jumped from the high 1.4% range to the mid 1.5% range in just one day. The dollar index, which indicates the value of the dollar against the six major currencies, is currently at 93.71.

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