Won-Dollar Exchange Rate Starts Up After 4 Trading Days... Mid-1320 Won Range

The won-dollar exchange rate, which started to rise after four trading days, is showing fluctuations in the mid-1320 won range.

According to the Seoul foreign exchange market on the 9th, as of 10:50 a.m., the won-dollar exchange rate is 1,324.7 won, up 3.3 won from the previous day.

On this day, the exchange rate opened at 1,322.4 won, up 1.0 won, rose to 1,326.7 won around 9:41 a.m., and has since been moving in the low to mid-1320 won range.

This is due to the dollar's strength as concerns about an economic recession eased somewhat following strong U.S. employment data.

U.S. nonfarm payrolls increased by 253,000 in April, exceeding market expectations. The April unemployment rate was 3.4%, matching the lowest level since 1969 recorded in January.

The won-dollar exchange rate is showing limited movement amid caution ahead of the U.S. Consumer Price Index (CPI) announcement on the 10th. If the CPI exceeds expectations, the expectation that the Federal Reserve (Fed) will cut interest rates within the year may disappear, potentially dampening investor sentiment.

A representative from Hana Securities said, "Although the exchange rate started to rise after four trading days due to the strong dollar overnight, the outlook that the U.S. dollar will continue a mild weakening trend through the second half of the year remains unchanged," adding, "The quarterly average won-dollar exchange rate is expected to gradually decline to around 1,300 won in Q2, 1,280 won in Q3, and 1,250 won in Q4."

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