Won-Dollar Exchange Rate Hits Intraday Record High... Monitoring US Employment and Inflation Index (Comprehensive)

[Image source=Yonhap News]

The won-dollar exchange rate continued its upward trend for the fourth consecutive trading day as concerns over additional tightening increased ahead of the release of the U.S. February employment report.

According to the Seoul foreign exchange market on the 10th, the won-dollar exchange rate closed at 1,324.2 won, up 2.0 won from the previous day's closing price.

The exchange rate opened at 1,325.5 won, up 3.3 won from the previous day's close, and rose to 1,329.0 won during the session, setting a new high.

This was due to heightened market caution ahead of the U.S. February employment report release and deteriorating investor sentiment as bank stocks plunged on the New York Stock Exchange.

On the same day, the Bank of Japan (BOJ) announced it would maintain its large-scale monetary easing policy, which also contributed to the won's weakness and the rise in the won-dollar exchange rate.

However, in the latter part of the session, the increase in the exchange rate narrowed as estimated selling volumes from foreign exchange authorities' intervention flowed in.

The exchange rate is expected to move according to the U.S. February employment data in the future. If the employment data exceeds market expectations, there is a possibility that the U.S. Federal Reserve (Fed) will implement a 0.50 percentage point interest rate hike this month.

Fed Chair Jerome Powell made a hawkish remark in his congressional speech this week, stating that "if overall indicators suggest faster tightening is necessary, we are prepared to accelerate the pace of rate hikes."

Baek Seok-hyun, an economist at Shinhan Bank, said, "Concerns over the U.S. employment data persist, and the decline in U.S. bank stocks could spread anxiety," adding, "With the U.S. Consumer Price Index (CPI) announcement scheduled for next week, volatility is expected to continue for the time being."

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