Exchange Rate Surges 8.3 Won to 1325.1 Won... Impact of US Credit Rating Outlook Downgrade (Update)

Up 8.3 Won Compared to Previous Trading Day

On the 13th, the won-dollar exchange rate closed at 1,325.1 won, up 8.3 won due to the downgrade of the U.S. credit rating outlook.

On that day, the exchange rate started the session at 1,318 won, 1.2 won higher than the previous trading day, fluctuated in the high 1,310 won range during the morning, and then rose to the mid-1,320 won range.

[Image source=Yonhap News]

The exchange rate was under upward pressure as the long-term U.S. Treasury yields rose and risk appetite weakened following Moody's downgrade of the U.S. credit rating outlook.

On the 10th (local time), Moody's maintained the U.S. sovereign credit rating at the highest grade of 'Aaa' but revised the outlook from 'stable' to 'negative.' The credit rating report released that day explained the reason for the downgrade, stating, "Risks to the fiscal health of the United States have increased, and the country's intrinsic credit strengths are no longer sufficient to fully offset these risks."

This week, the exchange rate is expected to experience increased volatility. Park Sang-hyun, a senior analyst at Hi Investment & Securities, said, "This week, various events are pending, including the release of the U.S. October consumer price index, the U.S.-China summit, and the U.S. budget negotiations ahead of the expiration of the temporary budget bill," adding, "These will significantly impact not only U.S. Treasury yields but also the dollar."

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