Won-Dollar Exchange Rate Falls for 5 Trading Days... Impact of Stronger Chinese Yuan

[Image source=Yonhap News]

The won-dollar exchange rate fell for the first time in five trading days.

According to the Seoul foreign exchange market on the 27th, the won-dollar exchange rate closed at 1,300.3 won, down 6.0 won from the previous day.

The exchange rate, which opened at 1,307.0 won, up 0.7 won from the previous day's closing price, turned downward influenced by the strengthening of the Chinese yuan.

In the afternoon, it dropped to as low as 1,297.7 won before narrowing the decline and closing in the 1,300 won range.

The market views that major Chinese state-owned banks sold dollars to slow the pace of yuan depreciation, and the People's Bank of China set a lower official dollar-yuan exchange rate, leading to a yuan appreciation and influencing the exchange rate decline.

The People's Bank of China announced an official exchange rate lower than market expectations for two consecutive days until today.

On this day, the People's Bank of China set the dollar-yuan central parity rate at 7.2098 yuan, up 0.0042 yuan (0.06%) from the previous day. Although this represents a depreciation of the yuan, the depreciation was smaller than the market expectation of 7.2194 yuan.

As of 3:30 PM, the won-yen recalculated exchange rate is 905.47 won per 100 yen.

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