The won-dollar exchange rate opened higher in the upper 1540s.
As of 10:01 a.m. on June 26, the exchange rate in the Seoul foreign exchange market stood at 1548.4 won per dollar. The rate opened at 1547.3 won, up 4.6 won from the previous session.
The rate closed at 1542.7 won the previous day, marking its highest level since March 9, 2009, when it reached 1549.0 won, and upward pressure continues. The exchange rate has been on the rise since June 22, with the only decline occurring on June 19, when it fell by 0.1 won.
Analysts attribute the increase to strengthened expectations of interest rate hikes by the U.S. Federal Reserve and ongoing foreign selling in the domestic stock market. Foreign investors have sold a net 1.2262 trillion won in the stock market.
The Personal Consumption Expenditures (PCE) price index, a key indicator for the Fed's monetary policy goals, recorded its highest increase in over three years in May. The PCE price index rose 4.1% year-on-year in May, aligning with expectations but reinforcing the outlook for interest rate hikes.
U.S. stock markets showed mixed results overnight. The Dow Jones Industrial Average closed up 71.72 points (0.14%) at 51,920.62.
The S&P 500 index fell by 0.73 points (0.01%) to finish at 7,357.49, while the Nasdaq Composite dropped 118.03 points (0.46%) to close at 25,358.60.
International oil prices rebounded following incidents involving vessels in the Strait of Hormuz. August futures for Brent crude closed at $75.26 per barrel, up 2.06%.
August futures for West Texas Intermediate (WTI) rose by 2.25% to $71.92 per barrel.
Min Kyung-won, an economist at Woori Bank, stated, "The outflow of foreign funds reducing exposure in the domestic stock market is also limiting the decline in the exchange rate. Following today's higher opening, we expect downward pressure to prevail, supported by end-of-quarter negotiations from exporters, testing the support level around 1540 won during the day."
* This article has been translated by AI.
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