Won-Dollar Exchange Rate Rises to 1310 Won Level... International Oil Prices Unstable

Photo by Jinhyung Kang aymsdream@

The won-dollar exchange rate is showing an upward trend, surpassing 1,310 won during trading on the 3rd.

On this day, in the Seoul foreign exchange market, the won-dollar exchange rate started at 1,306.2 won, up 4.3 won from the previous trading day's closing price, and fluctuated around 1,310 won in the early session.

As of 9:50 a.m., the won-dollar exchange rate stands at 1,312.50 won.

Although U.S. inflation indicators fell short of market expectations, the dollar strengthened as oil-producing countries announced plans to reduce crude oil production.

The U.S. Personal Consumption Expenditures (PCE) price index for February rose 5.0% year-on-year, lower than January's 5.3%. It increased 0.3% month-on-month, below the 0.4% market forecast compiled by Dow Jones.

The core PCE price index, favored by the U.S. Federal Reserve (Fed), rose 4.6% compared to the same period last year. This also slowed compared to the 4.7% increase in January and the expert forecasts compiled by the Wall Street Journal (WSJ).

Accordingly, all three major New York stock indices rose more than 1%, showing an upward trend.

However, OPEC+?a coalition of the Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC oil producers including Russia?announced on the 2nd (local time) a voluntary additional production cut of 1.16 million barrels per day, adding pressure to the rising exchange rate.

The production cuts by oil-producing countries push up international oil prices, which is negative for inflation. In the previous trading session in New York, the dollar index rose 0.42% to 102.601 compared to the previous close.

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