Won-Dollar Exchange Rate Starts at 1,470 Won... "Caution on Upward Pressure"

The Won-Dollar exchange rate has started rising again, recording the 1,470 won range. It is expected that the upward risk will continue due to ongoing political instability and sluggish year-end trading.

On the 30th, the Won-Dollar exchange rate in the Seoul Foreign Exchange Market started trading at 1,475.0 won, up 7.5 won from the previous session's closing price (weekly closing price on the 27th).

The closing price of overnight trading was 1,470.5 won, and the NDF offshore exchange rate was finally quoted at 1,473.50 won.

Externally, the strong dollar pressure continues, while internally, political instability persists. Experts pointed out that the upper limit of the Won-Dollar exchange rate could rise further, but the rise is expected to be limited due to caution over foreign exchange authorities' intervention.

Woori Bank analyzed, "Considering that importers' settlements are steadily being processed in terms of supply and demand, and that there is a bet on further exchange rate increases centered on offshore, it is necessary to open the upper limit to the 1,480 won range."

KB Kookmin Bank predicted, "The US 10-year Treasury yield has surged to the 4.6% range, and the Won-Dollar exchange rate will also be affected by the strong pressure of the dollar, which moves in tandem with long-term interest rates." Intervention by foreign exchange authorities and caution over the National Pension Service's currency hedging were cited as factors constraining the upward trend.

Reporter Yoo Joo-an jayou@wowtv.co.kr