Won-Dollar Exchange Rate Surpasses 1280 Won Intraday, Closes at 1275.3 Won

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jung] The won-dollar exchange rate surged to the 1280-won level during the morning session on the 11th, hitting a new high, but it widened its decline in the afternoon and closed lower.

On that day, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,275.3 won, down 1.1 won from the previous day.

At 10:18 a.m. that day, the won-dollar exchange rate sharply rose to 1,280.2 won, marking a new high for three consecutive trading days. It was the first time in about 2 years and 2 months since the exchange rate surpassed the 1,280-won level during the session, which last occurred on March 23, 2020 (high of 1,282.5 won), when the financial market was shocked by the spread of COVID-19.

The dollar strengthened as tightening concerns intensified following remarks by Loretta Mester, President of the Cleveland Federal Reserve Bank, who did not rule out the possibility of a 'giant step' of raising interest rates by 0.75 percentage points at once. Additionally, cautious sentiment continued ahead of the release of the U.S. Consumer Price Index (CPI) for April on the 11th (local time).

The exchange rate, which had been rising sharply, turned to a downward trend in the afternoon. Recent exchange rate movements have been largely linked to the trend of the yuan.

An official from the Bank of Korea's foreign exchange market team said, "Although China's April Consumer Price Index (CPI) announced that day exceeded expectations, it was at a relatively favorable level compared to other countries, and the Chinese stock market turned bullish," adding, "The Chinese yuan also turned stronger, reflecting the influence of the Asian market on the exchange rate."

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