The Won-Dollar Exchange Rate Hits 1291 Won Intraday... Surpasses Previous Highs for 5 Consecutive Trading Days

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] The won-dollar exchange rate soared to the 1,291 won level during the session, marking a new high for five consecutive trading days.

On this day, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,288.60 won, a sharp rise of 13.30 won compared to the previous trading day.

The exchange rate, which had been on an upward trend, rose to 1,291.50 won around 3 p.m., recording the highest level since March 19, 2020 (1,296 won), right after the COVID-19 outbreak.

Based on the closing price, it also surpassed March 19, 2020 (1,285.70 won), reaching the highest level since July 14, 2009 (1,293 won).

The U.S. Consumer Price Index (CPI) for April rose 8.3% year-on-year, exceeding the market expectation of 8.1%, spreading concerns about tightening monetary policy and continuing the dollar's strength. The weakening of the Chinese yuan also contributed to upward pressure on the exchange rate.

A foreign exchange market official said, "the yuan's sharp depreciation was influenced by the Chinese government's economic stimulus messages falling short of market expectations," adding, "there is an outlook that the U.S. Federal Reserve (Fed) may accelerate the pace of monetary policy tightening, which is expected to sustain the dollar's strength."

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