Won-Dollar Exchange Rate Closes at 1206.4 Won... Highest in 1 Year and 8 Months

[Image source=Yonhap News]

The won-dollar exchange rate rose to its highest level in about 1 year and 8 months.

On the 3rd, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,206.4 won, up 0.9 won from the previous trading day (1,205.5 won). This is the highest level in about 1 year and 8 months since June 23, 2020 (1,208.8 won).

The exchange rate opened at 1,202.0 won, down 3.5 won from the previous trading day, then rose steadily, surpassing the previous day's closing price. The won-dollar exchange rate has remained above the 1,200 won mark for three consecutive trading days since the 27th of last month.

It is interpreted that the imminent US tightening, employment indicators, and geopolitical risks between Russia and Ukraine have influenced the dollar's strength. Earlier, the US Federal Reserve (Fed) held its first Federal Open Market Committee (FOMC) regular meeting of the year on the 25th-26th of last month, suggesting that interest rate hikes could begin in March.

European interest rate hikes are also a source of concern. The European Central Bank (ECB) and the Bank of England (BOE) will hold monetary policy meetings this evening to decide on benchmark interest rates. There are opinions that the benchmark rates will be raised to a certain level by the end of the year.

During the Lunar New Year holiday, investment sentiment partially recovered due to strong earnings from US companies, but the market remains highly attentive to whether Europe will raise benchmark interest rates and to US employment indicators. The US Department of Labor will announce the number of new unemployment insurance claims, which shows the recovery status of the labor market, and this figure is expected to influence investment sentiment.

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