'1500 Won is Just Around the Corner'...Dollar-Won Exchange Rate Breaks 1470 Won

Touched 1470 During Early Morning in the US

Dollar Value Increases Due to Worsening US Employment Data

An employee organizing dollars at the Hana Bank's Counterfeit Response Center in Jung-gu, Seoul. Kim Bum-jun, Reporter

The Dollar-Won exchange rate expanded its rise during overnight trading. Amid a year-end atmosphere, trading volume significantly decreased, and the dollar strengthened further as the US weekly unemployment data was digested.

At 2 AM (Korea time) on the 27th, the Dollar-Won exchange rate closed at 1469.60 won, a sharp increase of 13.20 won compared to the previous Seoul foreign exchange market closing price. Compared to the weekly trading closing price (9 AM to 3:30 PM) of 1464.80 won, it rose by 4.80 won. The Dollar-Won exchange rate rose to 1470 won after the US weekly unemployment data was released early in the New York session, hitting an intraday high before slightly retreating.

According to the US Department of Labor, the number of people who newly applied for unemployment insurance for the week ending on the 21st was 219,000, seasonally adjusted, a decrease of 1,000 from the previous week. This is the lowest in a month and below the market expectation of 223,000.

On the other hand, the number of people continuously claiming unemployment insurance until the week ending on the 14th increased by 46,000 to 1.91 million, the highest in over three years, exceeding the market estimate of 1.88 million.

These results suggest that while layoffs are not increasing in the US labor market, it is becoming more difficult to find a job once unemployed. The Dollar Index (DXY), which reflects the value of the dollar against six major currencies, briefly exceeded 108.3 after the weekly unemployment insurance data was released, then reduced its gains. The Dollar Index remains near its highest level in over two years.

Song Jong-hyun, Reporter scream@hankyung.com