The won-dollar exchange rate is showing a downward trend after hitting an intraday high for the first time in two trading days.
According to the Seoul foreign exchange market on the 24th, the won-dollar exchange rate opened at 1,332.5 won, up 4.3 won from the previous trading day, surged to 1,332.7 won shortly after opening, and then hovered in the low 1,330s around 10 a.m.
The exchange rate, which reached an intraday high of 1,332.3 won on the 20th, broke the record again after two trading days.
Oh Chang-seop, a researcher at Hyundai Motor Securities, said, "From a supply and demand perspective, dividend demand this month is coinciding to strengthen the downside rigidity of the exchange rate," adding, "Ahead of next week's U.S. Federal Open Market Committee (FOMC) meeting, concerns over additional rate hikes have caused weakness in the yuan and other currencies, leading to the new high." He explained that the won's weakness continues due to persistent trade deficits and sluggish exports.
However, he expected that although the won-dollar exchange rate is temporarily rising due to caution over the U.S. FOMC, it will trend downward and stabilize. Researcher Oh added, "The market consensus is that the U.S. Federal Reserve (Fed) will raise the policy rate by 0.25 percentage points next month and then end the rate hike cycle," and "As the dollar reverses downward, the exchange rate is also expected to gradually calm down."
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