Exchange Rate Surpasses 1199 Won... Highest Level in Three Months (Comprehensive)

[Asia Economy Reporter Jang Sehee] Amid the continued strength of the US dollar, the won-dollar exchange rate has closely approached the 1,200 won level.

On the 5th, the won-dollar exchange rate opened at 1,197.0 won, up 2.9 won from the previous day, and rose to the 1,199 won range. As of 10:41 AM in the Seoul foreign exchange market, the won-dollar exchange rate recorded 1,199.7 won, up 5.6 won. This is the highest level since October 12 of last year (1,200.4 won).

The dollar's strength was also influenced by the expected acceleration of the US Federal Reserve's (Fed) interest rate hikes and the simultaneous rise in both short- and long-term US interest rates. At 8:10 PM local time on the 4th, the Dollar Index showed strength, rising 0.07 points from the previous session to 96.33.

Oh Changseop, a researcher at Hyundai Motor Securities, analyzed, "As the new year begins, the US interest rate hikes are becoming more active, and the dollar's strength is continuing, with US Treasury yields also rising together. It seems we have entered such a phase. Seasonal factors such as a decrease in dollar supply due to the current account balance may have also partially influenced supply and demand."

There are also forecasts that the exchange rate will surpass 1,200 won during the first quarter of this year. Researcher Oh said, "Due to US monetary tightening and foreign dividend remittance demand, the rate is expected to exceed 1,200 won in the first quarter. If the Fed's interest rate hikes and the US economic recovery coincide, it could rise even further." He projected a short-term peak around 1,250 won.

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