Won-Dollar Exchange Rate Hits Highest in 11 Months... "Second Resistance Level Raised to 1400 Won"

Concerns over prolonged tightening have caused U.S. Treasury yields to surge sharply, pushing the won-dollar exchange rate to its highest level in 11 months.

According to the Seoul foreign exchange market on the 5th, the won-dollar exchange rate closed at 1,363.5 won, up 14.2 won from the previous trading day. This is the highest closing level since November 10 last year (1,377.5 won).

On that day, the exchange rate opened at 1,360.0 won, rising during the session due to the U.S. Federal Reserve's (Fed) hawkish (preference for monetary tightening) remarks and the rise in U.S. Treasury yields.

In particular, the number of U.S. job openings in August reached 9.61 million, significantly exceeding expectations, and with strong employment indicators, concerns over prolonged tightening are intensifying. U.S. Treasury yields are also showing a sharp rise, especially in the long-term segment.

Seunghyuk Kim, a researcher at NH Futures, said, "Amid the won's concentration trend, the upper limit of the existing rising band at 1,360 won was broken for the first time, and the upper limit is being adjusted upward to 1,400 won, which was suggested as the second resistance level," adding, "The recent strong dollar trend may continue for the time being until the Fed's stance changes due to changes in the U.S. economy toward the end of the year are absorbed."

[Image source=Yonhap News]

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