Won-Dollar Exchange Rate Fluctuates in Mid-1290 Won Range... Continued Expectations for Interest Rate Cuts

On the 27th, the won-dollar exchange rate is fluctuating in the mid-1290 won range in early trading.

As of 9:30 a.m. in the Seoul foreign exchange market, the won-dollar exchange rate is trading at 1293.5 won, down 1 won from the previous day.

The exchange rate opened at 1295.8 won, up 1.3 won from the previous day, and is moving in the mid-1290 won range.

The dollar fell overnight due to expectations of a rate cut by the U.S. Federal Reserve (Fed). The dollar index dropped 0.25% from the previous session to 101.727.

According to the Chicago Mercantile Exchange (CME) FedWatch, the probability of the Fed cutting rates in March next year is about 82%.

The New York stock market also rose amid risk appetite, with the Standard & Poor's (S&P) 500 index up 0.42%, the Dow Jones Industrial Average up 0.43%, and the Nasdaq index up 0.54%.

However, since year-end trading is not active and the previous day's decline was large at 8.5 won, the exchange rate volatility is expected to narrow today.

[Image source=Yonhap News]

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