[Asia Economy Reporter Seo So-jeong] As the US wage growth rate slowed and the dollar weakened, the won-dollar exchange rate closed in the 1240 won range for the first time in over seven months.
According to the Seoul foreign exchange market on the 9th, the won-dollar exchange rate closed at 1243.5 won, down 25.1 won from the previous trading day. This is the first time the exchange rate has closed in the 1240 won range since June 3 last year (closing price 1242.7 won).
The exchange rate opened at 1255.0 won, down 13.6 won from the previous trading day, and gradually widened its decline, trading in the 1240 won range during the session.
Seunghyuk Kim, a researcher at NH Futures, analyzed, "Although the US December nonfarm payrolls exceeded the market expectation of 200,000, the December average hourly wage growth rose 4.6% year-on-year, falling short of expectations. This slowdown in wage growth is interpreted as a factor that will reduce future inflationary pressures, lowering the Federal Reserve's tightening concerns and putting downward pressure on the dollar."
Researcher Kim also said, "The Institute for Supply Management (ISM) announced that the service sector (non-manufacturing) Purchasing Managers' Index (PMI) was 49.6, which is below expectations and a burden for further Fed rate hikes," adding, "As the sentiment that concerns about Fed rate hikes will weaken continued, the downward trend was maintained." He further stated, "The yuan's strength due to expectations of China's reopening (resumption of economic activities) was also a factor in the exchange rate decline," and forecasted, "The downward trend at the beginning of the year may continue, and a drop to the 1230 won range cannot be ruled out."
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