Won-Dollar Exchange Rate Slightly Rises on US Additional Tightening Concerns... Closes at 1317.7 Won

[Image source=Yonhap News]

The won-dollar exchange rate closed slightly higher amid concerns over additional tightening by the U.S. Federal Reserve (Fed).

According to the Seoul foreign exchange market on the 30th, the won-dollar exchange rate closed at 1,317.7 won, up 0.1 won from the previous day.

On that day, the exchange rate opened at 1,321.9 won, up 4.3 won from the previous day due to the strong dollar, but after opening, the rebound of the yuan lowered the increase to the high 1,310 won range.

The exchange rate closed higher because U.S. economic indicators showed strength, raising concerns about further Fed tightening.

According to Bloomberg and others, on the 29th (local time), Wall Street saw the first-quarter gross domestic product (GDP) growth rate at 2%, and unemployment claims decreased beyond market expectations, showing solid economic recovery in the U.S., which has increased the likelihood of two additional interest rate hikes within the year.

Fed Chair Jerome Powell also stated at a conference hosted by the Bank of Spain that at least two rate hikes would be necessary this year, and the possibility of two consecutive hikes was not excluded from discussions.

Meanwhile, due to the continued weakness of the yen, the yen-dollar exchange rate surpassed 145 yen per dollar in the Tokyo foreign exchange market that morning. The yen-dollar exchange rate reaching the 145 yen level is the first time since November last year.

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