[Photo by Yonhap News]
As the market awaits the release of U.S. inflation data, the won-dollar exchange rate is showing an upward trend.
On June 25, in the Seoul foreign exchange market, the exchange rate for the Korean won against the U.S. dollar was trading at 1547.9 won as of 9:15 a.m.
The rate opened at 1543.0 won, up 1.2 won from the previous trading day, and has continued to rise.
Overnight, U.S. semiconductor company Micron Technology reported earnings that significantly exceeded market expectations. Its quarterly revenue surpassed $40 billion for the first time, with a gross profit margin nearing 85%. Following the earnings announcement, the company's stock rose by more than 10% in after-hours trading.
Micron's strong performance also led to a rebound in Nasdaq futures, which had been weak the previous day. Optimism about the artificial intelligence (AI) semiconductor sector has improved investor sentiment, particularly for domestic semiconductor stocks.
However, caution ahead of the release of the U.S. Personal Consumption Expenditures (PCE) price index is contributing to the rise in the exchange rate. The PCE is the inflation measure most closely monitored by the Federal Reserve, and the market is closely watching for signs of potential further interest rate hikes later this year.
The dollar index remained above 101.6, marking its highest level since May of last year. This strength is attributed to concerns over the Fed's hawkish monetary policy and a preference for safe-haven assets.
Min Kyung-won, an economist at Woori Bank, stated, "With the recent strong semiconductor exports and active dollar selling by exporters, some of the accumulated offshore long positions are being unwound. Additionally, concerns about the foreign exchange authorities' market stabilization measures are limiting the upper range of the exchange rate."
On June 25, in the Seoul foreign exchange market, the exchange rate for the Korean won against the U.S. dollar was trading at 1547.9 won as of 9:15 a.m.
The rate opened at 1543.0 won, up 1.2 won from the previous trading day, and has continued to rise.
Overnight, U.S. semiconductor company Micron Technology reported earnings that significantly exceeded market expectations. Its quarterly revenue surpassed $40 billion for the first time, with a gross profit margin nearing 85%. Following the earnings announcement, the company's stock rose by more than 10% in after-hours trading.
Micron's strong performance also led to a rebound in Nasdaq futures, which had been weak the previous day. Optimism about the artificial intelligence (AI) semiconductor sector has improved investor sentiment, particularly for domestic semiconductor stocks.
However, caution ahead of the release of the U.S. Personal Consumption Expenditures (PCE) price index is contributing to the rise in the exchange rate. The PCE is the inflation measure most closely monitored by the Federal Reserve, and the market is closely watching for signs of potential further interest rate hikes later this year.
The dollar index remained above 101.6, marking its highest level since May of last year. This strength is attributed to concerns over the Fed's hawkish monetary policy and a preference for safe-haven assets.
Min Kyung-won, an economist at Woori Bank, stated, "With the recent strong semiconductor exports and active dollar selling by exporters, some of the accumulated offshore long positions are being unwound. Additionally, concerns about the foreign exchange authorities' market stabilization measures are limiting the upper range of the exchange rate."
* This article has been translated by AI.
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