Exchange Rate Starts Down at 1199 Won... Q1 Peak Expected

On the 10th, the KOSPI opened at 2,947.37, down 7.52 points (0.25%) from the previous trading day, as the KOSPI and other indices were displayed on the electronic board in the Hana Bank dealing room in Jung-gu, Seoul. On the same day, the won-dollar exchange rate started at 1,198.8 won, down 2.7 won from the previous trading day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Jang Sehee] Ahead of the release of the U.S. Consumer Price Index (CPI) on the 12th, the won-dollar exchange rate continues to rise. This is based on the judgment that if the U.S. consumer price inflation rate rises further compared to the same month last year, an early interest rate hike by the U.S. Federal Reserve (Fed) and a response as a key currency will be inevitable.

On the morning of the 10th, the won-dollar exchange rate is above 1199 won. In the Seoul foreign exchange market, as of 10 a.m. on the same day, the won-dollar exchange rate is 1199.1 won, down 2.4 won compared to the previous day's closing price. The exchange rate started at 1198.8 won, down 2.7 won from the previous session, rose to 1200 won in the early session, and is now moving around the 1199 won level.

There are also market forecasts that the exchange rate may reach its peak in the first quarter.

Yoon Yeosam, a researcher at Meritz Securities, analyzed, "Due to the Fed's balance sheet reduction and other factors, U.S. interest rates are rising, maintaining the dollar's strength." He added, "If the first quarter peak is broken, it could reach up to 1250 won. However, depending on the monetary policy trends of major countries such as the European Central Bank in the second half of the year, the one-sided strength of the dollar may calm down."

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