Won-Dollar Exchange Rate Rebounds After Yoon's Address... Closes at 1430 Won for Two Consecutive Days [Hankyung Forex Market Watch]

The Won-Dollar exchange rate closed at the 1430 won level for two consecutive days. The rate, which had been declining due to expectations of a U.S. interest rate cut, rebounded after President Yoon Suk-yeol's public address. The weakness of the Chinese Yuan also had an impact.

On the 12th, in the Seoul foreign exchange market, the Won-Dollar exchange rate (as of 3:30 PM) ended weekly trading at 1431 won 90 jeon, down 30 jeon from the previous day. Following the previous day's 1432 won 20 jeon, the exchange rate remained in the 1430 won range for two consecutive days.

The exchange rate was on a downward trend early in the session. It opened at 1429 won 10 jeon, more than 3 won lower, and fell to the 1428 won level early in the session. This was due to the U.S. consumer price index meeting market expectations, maintaining hopes for a U.S. interest rate cut.

The exchange rate began to rise around 9:30 AM. After President Yoon's public address stating that the declaration of martial law is an act of governance and not subject to judicial review, the rate jumped to 1434 won 80 jeon. Around this time, the People's Bank of China announced a devaluation of the Yuan, which also contributed to the rebound. The People's Bank of China raised the Yuan's reference rate from 7.1843 Yuan per dollar to 7.1854 Yuan.

The Dollar Index, which reflects the value of the dollar against six major currencies, rose 0.17% from the previous day to 106.576.

At the same time, the Won-Yen fiscal exchange rate was 937 won 69 jeon per 100 yen, down 6 won 60 jeon from the previous day's 3:30 PM standard. The Yen-Dollar exchange rate rose 0.68% from the previous day to 152.706 yen.

Reporter Gang Jin-kyu josep@hankyung.com