On May 16, the won-dollar exchange rate fell to the 1,380 won level, marking its lowest point in about six months. This was the result of a globally weaker dollar and ongoing caution regarding currency consultations between South Korea and the United States.
On this day, the won-dollar exchange rate closed weekly trading at 1,389.6 won in the Seoul foreign exchange market, down 4.9 won from the previous trading day. This was the lowest weekly closing price since November 8 of last year, when it recorded 1,386.4 won. The exchange rate opened at 1,397.0 won, up 2.5 won from the previous trading day. After a slight increase, it turned downward in the afternoon.
Overnight, the U.S. Department of Labor announced that the U.S. Producer Price Index (PPI) fell by 0.5% from the previous month. This figure was lower than the market forecast of 0.3%, raising expectations for a rate cut by the Federal Reserve (Fed). U.S. retail sales for April increased by 0.1% from the previous month, in line with market expectations. The dollar index, which measures the value of the dollar against the currencies of six major countries, stood at 100.557, down 0.23% from the previous day.
Market interest in currency consultations between South Korea and the United States remains high. Despite news that the U.S. is not pursuing a weak dollar policy, concerns over appreciation pressure on the won have persisted in the market, contributing to the downward trend in the exchange rate.
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