Won-Dollar Exchange Rate Starts Down... Falls Below 1190 Won Early in Trading Session

[Asia Economy Reporter Jang Sehee] On the morning of the 7th, the KRW-USD exchange rate started on a downward trend.

At 9:11 AM in the Seoul foreign exchange market, the KRW-USD exchange rate was 1,190.1 won per dollar, down 2.2 won from the previous day.

The exchange rate started down 1.3 won and has been fluctuating slightly around 1,190 won in the early trading session.

As the Republican Party proposed postponing the debt ceiling until December, concerns over the US debt ceiling negotiations have somewhat eased, leading to a slight recovery in investor sentiment. The exchange rate fell as it closed the previous day above 1,190 won for the first time in 1 year and 2 months, amid caution that the government might take measures in response.

On the 6th, the KRW-USD exchange rate closed at 1,192.3 won, up 3.6 won from the previous trading day, prompting market forecasts that it could rise to the 1,200 won level.

However, experts judged the exchange rate level as an overshooting. Overshooting refers to a temporary surge in market prices. Given that the domestic economic conditions are not unfavorable, the upward trend in the exchange rate is expected to be limited.

Jeon Gyu-yeon, a researcher at Hana Financial Investment, said in an interview with Asia Economy, "Since the domestic economic situation, including exports, is not bad and the credit default swap (CDS) remains at a low level, the domestic risk itself is not considered significant," adding, "The exchange rate overshooting is due to global issues such as the Evergrande crisis."

The KRW-JPY recalculated exchange rate was 1,069.03 won per 100 yen at 9:11 AM, up 2.14 won from the previous day's closing price of 1,066.89 won at 3:30 PM.

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