14-month low won-dollar exchange rate remains in the 1350s.
As of 9:03 a.m. on September 4, the exchange rate for the Korean won against the U.S. dollar was 1,355.5 won. The rate at 6 a.m. was trading at 1,357.5 won, down 1.5 won from the previous day's closing rate of 1,359.3 won recorded at 3:30 p.m. the day before, marking the first time it fell below 1,360 won since July 3 of last year.
This trend is attributed to comments from Federal Reserve Governor Christopher Waller, who expressed support for holding interest rates steady if inflation pressures ease in upcoming price indicators. Additionally, John Williams, president of the New York Federal Reserve, noted that the recent surge in U.S. Treasury yields is a result of a strong economy rather than market dysfunction, emphasizing the need to monitor price trends carefully.
As a result, market expectations for a rate hike in September have diminished, leading to increased risk appetite. The New York stock market also saw gains, with the Dow Jones Industrial Average closing up 624.16 points (1.18%) at 53,686.11. The S&P 500 index rose by 81.11 points (1.06%) to finish at 7,747.71, while the Nasdaq Composite gained 366.23 points (1.40%) to close at 26,584.06.
The value of the dollar also declined, with the dollar index, which measures the dollar against six major currencies, falling 0.60% to 98.967, dipping below the 99 mark.
International oil prices showed mixed results amid ongoing tensions between the U.S. and Iran. October futures for West Texas Intermediate (WTI) crude rose by 0.32% to close at $91.30 per barrel, marking four consecutive days of increases. In contrast, November futures for Brent crude fell by 0.12% to $95.52 per barrel.
The exchange rate is expected to remain in the 1350s. Min Kyung-won, an economist at Woori Bank, stated, "With the dollar's weakness and concerns over yen intervention persisting, we expect fluctuations around the high 1350s. The Fed's tightening concerns, which had previously pressured the won, have now turned favorable for the currency." He added, "The strengthening of the yen adds to the favorable conditions for the won, although actual demand from importers for low-price purchases will support the lower end of the exchange rate."
* This article has been translated by AI.
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