Global Dollar Rebounds... Won-Dollar Exchange Rate Fluctuates Around 1,380 Won in Early Trading (Update)

The won-dollar exchange rate opened slightly higher, influenced by a rebound in the global dollar, and has been fluctuating around the 1,380 won level in early trading.

On the 23rd, the KOSPI index started the session fluctuating around 2600. Various indices are displayed on the status board in the dealing room of Hana Bank in Jung-gu, Seoul.

As of 9:22 a.m. on the 23rd in the Seoul foreign exchange market, the won-dollar exchange rate was trading at 1,381.6 won, up 0.3 won from the previous session's weekly closing price (as of 3:30 p.m.).

The previous day's weekly trading for the won-dollar exchange rate closed at 1,381.3 won, down 5.9 won from the previous trading day. This is the lowest level since November 5 of last year (1,378.6 won). Amid ongoing currency negotiations between South Korea and the United States, the won faced upward pressure due to continued concerns that the U.S. might demand a stronger won from South Korea.

However, as the sharp rise in U.S. long-term Treasury yields subsided and concerns over the economy eased, the global dollar rebounded overnight, and the won-dollar exchange rate also opened higher on this day. The yield on the U.S. 10-year Treasury note briefly exceeded the 4.6% range, but fell to around 4.54% following comments from Christopher Waller, a member of the U.S. Federal Reserve Board, suggesting the possibility of a rate cut, as well as perceptions that the market had been oversold.

On this day, the won-dollar exchange rate opened at 1,384.5 won, up 3.2 won from the previous session. However, in early trading, it showed mixed movement, falling back toward the 1,380 won level. The dollar index, which measures the value of the dollar against the currencies of six major countries, stood at 99.858, up 0.34% from the previous day.

Min Kyungwon, a researcher at Woori Bank, said, "The surge in U.S. long-term Treasury yields has come to an end, and economic indicators remain favorable compared to other major countries, allowing the dollar index to recover to the high 99 level. On this day, the won-dollar exchange rate is expected to attempt to regain support in the mid-1,380 won range, driven by the global dollar rebound."