The won-dollar exchange rate is showing a slight decline.
As of 9:22 a.m. on September 18, the exchange rate in the Seoul foreign exchange market is 1380.3 won against the U.S. dollar. The rate at 6 a.m. today was 1381.5 won, down 0.7 won from the previous day's reference rate at 3:30 p.m.
This decline is attributed to reduced uncertainty in the financial markets following the Federal Reserve's interest rate hike.
The dollar also showed a slight weakening. The dollar index (DXY), which reflects the value of the dollar against six major currencies, fell by 0.04% to 100.215.
The U.S. stock market also rebounded. The Dow Jones Industrial Average closed up 316.14 points (0.61%) at 51,778.04.
The Standard & Poor's (S&P) 500 index rose by 85.95 points (1.14%) to 7,637.76, while the tech-heavy Nasdaq Composite Index increased by 439.87 points (1.69%) to 26,418.30.
U.S. Treasury yields and international oil prices also fell. The yield on the 10-year U.S. Treasury note decreased by 5.7 basis points (1 basis point = 0.01 percentage point) to 4.946%. The yield on the 2-year Treasury note, which is sensitive to monetary policy, also dropped by 3.8 basis points to 4.688%.
International oil prices fell as concerns over supply disruptions from Saudi Arabia eased. The November futures for Brent crude oil closed down 0.95% at $104.82 per barrel, while the October futures for West Texas Intermediate (WTI) crude oil fell 0.51% to $101.91.
In the early trading session, foreign investors are in a buying position in the domestic stock market. In the securities market, foreign investors have net purchased 29.6 billion won.
The exchange rate is expected to decline further. Min Kyung-won, an economist at Woori Bank, stated, "We are paying attention to the volatility of the yen ahead of the Bank of Japan's interest rate decision, but the overall trend is expected to reflect stability in international oil prices and decline."
He added, "Recent low-priced buying from both domestic and foreign markets has led to a rebound in the exchange rate, but considering the upcoming Chuseok holiday and the steady demand for currency exchange from semiconductor companies, it is likely to stabilize slightly downward rather than rise further before the holiday."
* This article has been translated by AI.
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