The won-dollar exchange rate is trending upward in the 1,370 won range.
As of 9:39 a.m. on August 31, the exchange rate in the Seoul foreign exchange market is 1,378.7 won per U.S. dollar. The rate was trading at 1,379.5 won, up 7.0 won from the previous week's closing price as of 6 a.m. today.
This increase is attributed to a stronger dollar following hawkish comments from Federal Reserve Chair Kevin Warsh.
At the same time, the dollar index, which measures the dollar's value against six major currencies, fell 0.06% to 99.65.
International oil prices dropped on August 28 due to expectations of a recovery in oil transport through the Strait of Hormuz and Warsh's hawkish remarks.
October futures for West Texas Intermediate (WTI) crude oil fell 0.16% to $83.40 per barrel, while Brent crude for October delivery decreased 0.43% to $89.31 per barrel.
The exchange rate is expected to rise into the 1,380 won range. Min Kyung-won, an economist at Woori Bank, stated, "I expect the rate to attempt a rebound into the high 1,380s, reflecting the rise in government bond yields triggered by Warsh's comments, a strong dollar, and a decrease in risk appetite. Although Warsh did not provide clues about a rate hike, he emphasized that achieving the 2% inflation target is a key task, which has impacted the market with a strong dollar shock."
* This article has been translated by AI.
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