Won-Dollar Exchange Rate Surges 12 Won Amid Dollar Strength... Mid-1320 Won Range (Update)

The won-dollar exchange rate surged by 12 won amid the global dollar strength, closing the session in the mid-1320 won range.

According to the Seoul foreign exchange market on the 7th, the won-dollar exchange rate closed at 1325.3 won, up 12.2 won from the previous day.

The exchange rate opened at 1316.0 won, up 2.9 won from the previous day, and increased its rise to 1327.2 won.

It is interpreted that the dollar strength was fueled as risk aversion sentiment revived after the US private employment for November, announced by US employment data firm Automatic Data Processing (ADP), recorded 103,000, significantly below the expected 128,000.

Seunghyuk Kim, a researcher at NH Futures, said, "The won-dollar exchange rate appears to be testing a high point, reflecting the global dollar strength trend, safe-haven preference, and yuan weakness," adding, "As West Texas Intermediate (WTI) crude oil returns to the $60 range and the inversion of short- and long-term interest rate spreads widens again, market recession concerns are intensifying depending on the cooling speed of the employment market."

Researcher Kim also said, "Both the Bank of Canada's (BOC) dovish meeting and the Bank of Japan's (BOJ) remarks supporting ultra-loose monetary policy influenced the dollar strength," and "Moody's downgrade not only China's sovereign credit rating but also the outlook for major Chinese banks, which extended the yuan's weakness trend and contributed to the won's depreciation."

[Image source=Yonhap News]

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