Won-Dollar Exchange Rate Hits 1360 Won Level 'New High'... Concerns Over Prolonged High Interest Rates (Update)

The yield on the U.S. 10-year Treasury bond surpassed 4.8%, and concerns over a prolonged period of high interest rates spread, causing the won-dollar exchange rate to break its yearly high again.

According to Seoul Foreign Exchange Brokerage on the 4th, the won-dollar exchange rate was recorded at 1,362.3 won at 9:09 a.m., up 13.0 won from the previous trading day's closing price.

[Image source=Yonhap News]

On that day, the exchange rate started at 1,360 won, up 10.7 won from the previous trading day, and increased further during the session. The won-dollar exchange rate exceeding 1,360 won during the session is the first time since November 22 of last year (1,362.9 won).

The U.S. dollar strengthened the previous day due to hawkish remarks from Federal Reserve officials and rising U.S. Treasury yields.

With growing expectations that the Federal Reserve's high interest rate policy will be prolonged, the yield on the 10-year U.S. Treasury bond soared to 4.81% on the 3rd (local time), marking the highest level in 16 years since August 2007, before the global financial crisis.

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