Exchange Rate Hits 1380 Won... KOSPI Falls Below 2400 Amid Growing US Tightening Concerns

[Asia Economy Reporter Ji Yeon-jin] The KOSPI index fell below the 2400 mark from the early session on the 7th, following the weak trend in the U.S. stock market due to rising interest rates.

The KOSPI index started trading at 2395.66, down 14.36 points (0.60%) from the previous day, and has slightly reduced its early losses. As of 9:05 a.m., foreigners and institutions are net selling about 17.5 billion KRW each, while individuals are net buying about 49.2 billion KRW.

The KOSDAQ opened down 2.64 points (0.34%) at 776.82. Individuals are net buying 35 billion KRW, while foreigners and institutions are net selling about 25.9 billion KRW and 8.5 billion KRW, respectively.

On the previous day, the New York stock market saw continued caution over the Federal Reserve's tightening, with corporate bond issuance flowing into the bond market, triggering a rise in interest rates. It is analyzed that the U.S. Services Purchasing Managers' Index (PMI) rose month-on-month contrary to market expectations, stimulating the upward trend in interest rates. The 10-year U.S. Treasury yield surged 16 basis points to close at 3.35%, and the 2-year yield, sensitive to policy rate outlooks, rose 11.6 basis points to settle around 3.5%. The dollar index surpassed 110 points due to interest rate effects.

In the Seoul foreign exchange market on the same day, the won-dollar exchange rate opened at 1377.0 won, up 5.3 won from the previous day, and rose to 1380.0 won.

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