The won-dollar exchange rate turned upward after four trading days.
According to the Seoul foreign exchange market on the 7th, the won-dollar exchange rate was 1,302.8 won at 9:10 a.m., up 5.50 won from the previous day.
As expectations for the end of the U.S. Federal Reserve's (Fed) interest rate hikes grew, the exchange rate, which had been declining for three consecutive trading days, reversed to an upward trend on this day after four trading days, moving in the low 1,300 won range in the early session.
This is interpreted as a result of forecasts for rising interest rates and a stronger dollar ahead of the U.S. Treasury bond auction.
Park Sang-hyun, a researcher at Hi Investment & Securities, said, "With expectations for the end of U.S. rate hikes, risk appetite has revived, and along with the full ban on short selling imposed the previous day, foreigners have started net buying in the domestic stock market, causing the exchange rate to plunge recently. Due to the short-term excessive decline, a consolidation phase is expected for the time being, and the direction will likely be tested around 1,300 won."
The won-yen recalculated exchange rate is 868.57 won per 100 yen. It rose 1.19 won from the previous trading day's closing price at 3:30 p.m. (867.38 won).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
