Won-Dollar Exchange Rate Falls on US Employment Data Slowdown... Early 1350 Won Range (Update)

The won-dollar exchange rate fell by more than 10 won in the early session as U.S. Treasury yields declined following a slowdown in U.S. private sector employment indicators.

According to the Seoul foreign exchange market on the 5th, the won-dollar exchange rate was recorded at 1,352.9 won, down 10.6 won from the previous day as of 9:12 a.m.

The exchange rate opened at 1,353.0 won, down 10.5 won, and has been moving in the low 1,350 won range in the early session.

The halt in the previously soaring exchange rate was due to the U.S. employment data released overnight by the employment information company Automatic Data Processing (ADP), which fell significantly short of expectations.

Seunghyuk Kim, a researcher at NH Futures, said, "U.S. September ADP private employment recorded an increase of 89,000, significantly below the expected 150,000 and the previous month's 180,000. Employment has been declining for four consecutive months recently, and all sectors of goods and services industries are showing signs of cooling in the job market."

The U.S. September Non-Manufacturing (Services) Purchasing Managers' Index (PMI) released by the Institute for Supply Management (ISM) was also recorded at 53.6, down from 54.5 the previous month.

Researcher Kim added, "Reflecting the employment and services PMI results, the yields on 2-year and 10-year U.S. Treasury bonds also fell, partially reversing the previous gains. Today, the won-dollar exchange rate is expected to show a downward pressure dominance, reflecting the calming trend in U.S. Treasury yields."

[Image source=Yonhap News]

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