Won-Dollar Exchange Rate Rises Due to Yuan Weakness... Opens at 1,470 Won

The won-dollar exchange rate is rising in the early session on the 6th due to the burden of yuan weakness.

In the Seoul Foreign Exchange Market, the Korean won exchange rate against the US dollar is trading at 1,473.60 won as of 9:26 a.m., up 5.2 won from the previous day's weekly closing price (based on 3:30 p.m.).

The exchange rate started at 1,470.0 won, up 1.6 won from the previous day, and then soared to 1,474.60 before slightly stabilizing.

The previous day, despite favorable economic indicators, the dollar slightly fell as the Euro and Pound Sterling rebounded.

The New York Stock Exchange saw a buying spree as the December ISM Manufacturing PMI index (49.3) significantly exceeded expectations. As the New York Stock Exchange succeeded in rebounding, the Euro rose with short-covering inflows, leading to a decline in the Dollar Index.

As a result, the Dollar Index, which shows the value of the dollar against the currencies of six major countries, fell by 0.44%p to 108.95 compared to the previous trading day.

However, news that the Chinese Foreign Exchange Authorities have stopped defending the yuan exchange rate is expected to limit the decline in the won-dollar exchange rate.

Woori Bank analyzed that the pressure of Asian currency weakness, which has a strong tendency to synchronize with the yuan, is a factor in the rise of the won-dollar exchange rate.

Reporter Yoo Oh-seong osyou@wowtv.co.kr