Due to US CPI Concerns, KRW-USD Exchange Rate Ends Higher for Two Consecutive Days

The won-dollar exchange rate closed higher for the second consecutive day.

According to the Seoul foreign exchange market on the 10th, the won-dollar exchange rate closed at 1,324.8 won, up 0.9 won from the previous day's closing price.

On that day, the exchange rate opened at 1,324.6 won, up 0.7 won from the previous day, amid news of difficulties in the U.S. debt ceiling negotiations overnight. With the U.S. Consumer Price Index (CPI) announcement approaching, a wait-and-see stance continued, resulting in limited exchange rate fluctuations.

The market expects the U.S. April CPI to rise 5.0% year-on-year and the core CPI to increase by 5.5%. These figures are similar to the March increases (5.0% and 5.6%, respectively).

An official from the foreign exchange authorities said, "Due to the failure of the U.S. debt ceiling increase agreement the previous day, U.S. Treasury yields rose and the dollar strengthened," adding, "If the U.S. inflation rate does not decline faster than expected, the possibility of tightening by the Federal Reserve (Fed) may emerge, which seems to have caused caution in the market."

[Image source=Yonhap News]

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