The Korean won to US dollar exchange rate continues to decline as the possibility of a US interest rate cut in September increases due to the slowdown in the US Consumer Price Index (CPI) rise. Based on the opening price, the won-dollar exchange rate is at its lowest in 37 days since September 9 last month (1,353 won).
As of 9:42 a.m. on the 16th, the won-dollar exchange rate in the Seoul foreign exchange market is trading at 1,351.5 won, down 17.6 won from the previous trading day. On this day, the won-dollar exchange rate opened at 1,353.8 won, down 15.3 won from the previous trading day, and the decline is widening.
On the 15th (local time), the US Department of Labor announced that the CPI rose 3.4% compared to the same month last year. After rising 3.1% in January, the CPI steadily increased in February (3.2%) and March (3.5%) before falling for the first time this year in April. As signs of slowing inflation and consumption appeared, market expectations for a Federal Reserve (Fed) interest rate cut increased.
Earlier, Fed Chair Jerome Powell mentioned that inflation would return to the level seen at the end of last year and that the next move would not be a rate hike.
It is interpreted that the Korean stock market and exchange rate were also influenced by the US on this day.
Meanwhile, the KOSPI opened at 2,770.27, up 39.93 points from the previous trading day. The three major US indices also all closed at record highs the previous day.
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