Won-Dollar Exchange Rate Closes Just Below 1440 Won... Strong Dollar Continues

Employees organizing US dollars at the Counterfeit Response Center of Hana Bank Headquarters in Euljiro, Jung-gu, Seoul
[Image source=Yonhap News]

On the 21st, the won-dollar exchange rate closed higher just below the 1,440 won mark.

On that day, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,439.8 won, up 6.5 won from the previous day's closing price.

The exchange rate opened at 1,432.4 won, 0.9 won lower than the previous day's close, and continued to rise during the session.

The expectation that the U.S. Federal Reserve (Fed) will maintain a strong tightening stance intensified, causing U.S. Treasury yields to surge sharply, which influenced the strengthening of the dollar.

Patrick Harker, President of the Philadelphia Federal Reserve Bank, said the day before, "With disappointing progress in slowing inflation, I expect interest rates to remain well above 4% through the end of this year."

The dollar index rose by 0.274 points from the previous day to 113.144, and the 2-year U.S. Treasury yield increased by 0.012 percentage points to 4.622%.

The weakness of Asian currencies also affected the exchange rate. The dollar-yen exchange rate rose 0.19% from the previous day to 150.41 yen. It surpassed 150 yen for the first time since August 1990 and continued its upward trend. The Chinese yuan also rose to the 7.26 yuan level in the offshore market.

Additionally, the Legoland Asset-Backed Commercial Paper (ABCP) crisis has tightened the domestic capital market, increasing market anxiety and contributing to the won's weakness.

Despite net buying by foreign investors, the domestic stock market closed lower. The KOSPI index fell 0.22% compared to the previous day, and the KOSDAQ index dropped 0.88%.

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