The Korean won is fluctuating around the 1540 level against the U.S. dollar, despite a decline in international oil prices.
As of 9:15 a.m. on June 23, the exchange rate stood at 1540.7 won per dollar, reflecting an increase of 2.4 won from the previous trading day, where it opened at 1539.4 won and has shown a stable trend.
Following the first negotiations between the U.S. and Iran after the signing of a memorandum of understanding (MOU) for peace on June 22, international oil prices dropped significantly.
The August futures price for Brent crude settled at $77.90 per barrel, a decrease of 3.31% from the previous session. Meanwhile, the July futures price for West Texas Intermediate (WTI) crude fell by 2.32%, closing at $74.82 per barrel.
The decline in oil prices was largely attributed to some progress made during the high-level talks held in Switzerland between the U.S. and Iran following the MOU.
However, the strength of the dollar is being supported by concerns over potential interest rate hikes from the U.S. Federal Reserve, which is counteracting downward pressure on the exchange rate. The dollar index, which measures the dollar's value against six major currencies, was recorded at 101.04.
Minkyoung Kwon, an economist at Woori Bank, noted, "As the exchange rate rises above 1530 won, exporters are actively selling, which is a positive factor for the won. However, there is a growing concern about the inflow of fine-tuning amounts from authorities, indicating that the downside risks are more pronounced than the upside."
Kwon added, "The global strength of the dollar and the real demand for dollar purchases support the lower end of the exchange rate, but the market's increasing bets on Fed interest rate hikes pose a burden on the won."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.