The won-dollar exchange rate has remained above 1550 won for the second consecutive day.
As of 9:22 a.m. on July 2, the exchange rate in the Seoul foreign exchange market was 1554.6 won per dollar. The rate opened at 1552.3 won, down 2.6 won from the previous session.
Analysts interpret this as being influenced by the strong dollar and foreign selling in the domestic stock market. The dollar index, which measures the value of the dollar against six major currencies, rose by 0.22 to 101.41 overnight.
The dollar index fluctuated after Federal Reserve Chairman Kevin Warsh stated on July 1 (local time) that inflation risks in the U.S. have decreased and expectations for inflation have also fallen. However, market participants still exhibit caution regarding high inflation.
The New York stock market showed weakness, particularly due to declines in semiconductor stocks. The Dow Jones Industrial Average closed down 13.96 points (-0.03%) at 52,305.24.
The S&P 500 index fell by 16.13 points (-0.22%) to close at 7,483.23, while the Nasdaq Composite Index dropped 173.69 points (-0.66%) to finish at 26,040.03.
International oil prices declined amid optimism regarding peace negotiations between the U.S. and Iran. September futures for Brent crude fell by 1.89% to $71.57 per barrel.
August futures for West Texas Intermediate (WTI) crude dropped by 1.32% to $68.58 per barrel, nearing pre-war levels.
Foreign investors have been net sellers in the domestic stock market, with net sales of 21.859 trillion won in the securities market.
The exchange rate is expected to rise today due to the strong dollar, weak yen, and selling pressure in the domestic stock market. Min Kyung-won, an economist at Woori Bank, stated, "We anticipate an increase due to the combination of global dollar strength and real demand buying related to foreign rebalancing. The strong dollar trend is likely to continue, and the weak yen may further sustain long positions in the region."
* This article has been translated by AI.
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