US $1.9 Trillion Stimulus Bill Nears Passage... Won-Dollar Exchange Rate Surpasses 1140 Won (Update)

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] As the U.S. economy shows signs of recovery, U.S. Treasury yields have risen, and the dollar has strengthened, pushing the won-dollar exchange rate past 1,140 won.

As of 9:28 a.m. on the 9th, the won-dollar exchange rate is trading at 1,141.1 won in the Seoul foreign exchange market. On this day, the won-dollar exchange rate opened at 1,141.5 won, up 8.3 won from the previous trading day, and has been moving in the high 1,140s to low 1,141 won range. The won-dollar exchange rate has risen for three consecutive trading days since the 3rd (1,120.3 won), increasing by more than 20 won.

Last weekend, the U.S. Senate passed a $1.9 trillion economic stimulus bill, and if the House of Representatives also passes it on the 9th, it is expected that U.S. President Joe Biden will quickly sign the bill, fueling expectations for economic stimulus. If the U.S. economy recovers, inflation is expected to become visible, leading to a rise in U.S. Treasury yields and a corresponding strengthening of the dollar.

The dollar index, which indicates the value of the dollar against the currencies of six major countries, fluctuated around 92.3, up 0.05% from the previous trading day, maintaining its highest level of the year. The 10-year U.S. Treasury yield recorded 1.591%, down 0.003 percentage points from the previous session, appearing to have settled in the 1.5% range. Additionally, with the yuan also weakening, the won is interpreted as showing a concurrent weakness.