The won-dollar exchange rate has started on an upward trend.
As of 9:20 a.m. on July 1, the exchange rate in the Seoul foreign exchange market is 1550.80 won per U.S. dollar. The rate opened at 1549.8 won, up 0.4 won from the previous session. This marks the second consecutive day that the rate has exceeded 1550 won after surpassing that threshold for the first time in 16 trading days.
Overnight, U.S. stocks surged on optimism surrounding the artificial intelligence sector. The Dow Jones Industrial Average closed up 136.46 points, or 0.26%, at 52,319.20.
The Standard & Poor's 500 index rose 58.93 points, or 0.79%, to finish at 7,499.36, while the Nasdaq Composite gained 393.58 points, or 1.52%, closing at 26,213.72.
International oil prices fell following news of resumed talks between the U.S. and Iran. August Brent crude futures dropped 0.3% to $72.92 per barrel, while September West Texas Intermediate (WTI) futures fell 1.8% to $69.50 per barrel.
In the domestic stock market, foreign investors continued their selling spree, with net sales of 280.2 billion won in the early trading session.
Additionally, the strong dollar and the weakening yen are contributing to upward pressure on the won. The dollar index, which measures the dollar's value against six major currencies, was at 101.239 as of 9:07 a.m., down 0.088 from the previous day. A dollar index above 100 indicates a relatively strong dollar.
The exchange rate is expected to experience limited declines due to a recovery in risk appetite. Min Kyung-won, an economist at Woori Bank, stated, "We anticipate limited attempts at a decline amid foreign capital outflows and concerns over the weak yen, alongside a recovery in global risk appetite. There is also a sense that authorities may engage in smoothing operations to prevent overheating in long positions in the foreign exchange market, which could alleviate some of the downward pressure on the won."
* This article has been translated by AI.
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