Won-Dollar Exchange Rate Fluctuates Around 1320 Won... Rises Amid US Tightening Concerns

On the morning of the 6th, the status board in the dealing room of Hana Bank's headquarters in Euljiro, Jung-gu, Seoul, displayed the KOSPI and the USD-KRW exchange rate. [Image source=Yonhap News]

The won-dollar exchange rate continues to fluctuate around 1,320 won.

On the 18th, in the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,318.5 won, up 7.4 won from the previous trading day, showing an upward trend in the early session.

This is interpreted as the dollar strengthening due to growing concerns over tightening by the U.S. Federal Reserve (Fed).

The exchange rate rose to 1,320.8 won around 9:10 a.m. that day, then slightly fell, and as of 10:24 a.m., it is moving around 1,320 won.

Thomas Barkin, President of the Richmond Federal Reserve Bank, said in a discussion on the 17th (local time), "I want to see more evidence that inflation is returning to the target."

With U.S. economic indicators also showing improvement, the possibility of further interest rate hikes in the U.S. is increasing.

The April Empire State Manufacturing Index, which shows manufacturing activity in New York State, improved to 10.8 from -24.6 the previous month. This significantly exceeded the market expectation of -15.

The National Association of Home Builders (NAHB) housing market sentiment index for April also rose to 45, marking four consecutive months of increase since the beginning of this year.

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