The won-dollar exchange rate has dropped to the 1440s.
In the Seoul foreign exchange market on July 30, the exchange rate for the won against the U.S. dollar was 1,440.2 won as of 9:12 a.m. The rate was trading at 1,446.5 won, down 0.2 won from the previous day's closing price as of 6 a.m.
This decline is interpreted as a result of the U.S. Federal Reserve's decision to hold its policy interest rate steady, alleviating market concerns about a surprise rate hike.
The dollar index, which measures the value of the dollar against six major currencies, fell by 0.45% to 100.96.
International oil prices surged as military confrontations resumed between the U.S. and Iran. September futures for Brent crude rose by 7.91% to $90.74 per barrel, while September futures for West Texas Intermediate (WTI) increased by 6.56% to $84.46 per barrel.
The exchange rate is expected to fluctuate in the 1440s today. Min Kyung-won, an economist at Woori Bank, stated, "Today’s exchange rate is likely to test support in the 1440s, driven by the dollar's weakness following the Fed's rate hold and reduced bets on a September hike."
He added, "While the Fed emphasized its focus on price stability, the market, which had anticipated a surprise hike in July, has halved the probability of a September increase, leading to the dollar's weakness."
* This article has been translated by AI.
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