"Thought It Would Drop Today"... Won-Dollar Exchange Rate Back to '1452 Won' [Hankyung Forex Market Watch]

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The Won-Dollar exchange rate ended the weekly trading above 1450 won for the third consecutive trading day. It started with a slight decline in the early session, raising expectations of entering the 1440 won range, but upward pressure emerged strongly in the afternoon.

On the 23rd, the Won-Dollar exchange rate in the Seoul foreign exchange market (as of 3:30 PM) was 1452 won, up 60 jeon from the previous trading day. It exceeded 1450 won for three consecutive trading days following the 19th (1451 won 90 jeon) and the 20th (1451 won 40 jeon).

The exchange rate showed a clear downward trend only in the early session. It started at 1446 won, down 5 won 40 jeon from the previous trading day, and moved in the late 1440 won range throughout the morning. The U.S. Personal Consumption Expenditures (PCE) price index for November, announced on the 20th (local time), rose 2.4% year-on-year, falling short of the market expectation (2.5%), raising expectations for a rate cut by the U.S. Federal Reserve (Fed). When the U.S. lowers interest rates, the value of the dollar usually falls.

As a result, risk appetite emerged in the global market, and the dollar's strength faltered. The Dollar Index, which indicates the value of the dollar against six major currencies, is currently in the mid-107 range.

It fell somewhat after briefly exceeding 108 last week.

However, the exchange rate reduced its decline in the afternoon and turned upward from 3 PM, just before the weekly trading closing time. Park Hyung-jung, an economist at Woori Bank, analyzed, "Today's exchange rate was more influenced by our country's unique conditions than external factors," adding, "Concerns about economic fundamentals and political uncertainty remain."

At the same time, the Won-Yen fiscal exchange rate is trading at 927 won 23 jeon per 100 yen. This is up 2 won 51 jeon from the previous trading day's 3:30 PM standard price (924 won 72 jeon).

Reporter Kang Jin-kyu josep@hankyung.com