The won-dollar exchange rate has risen to the 1360 won level as U.S. long-term Treasury yields continue to climb.
As of 9:35 a.m. in the Seoul foreign exchange market, the exchange rate stands at 1361.4 won per U.S. dollar. Earlier, at 6 a.m., it was trading at 1355.7 won, up 2.9 won from the previous week's closing price.
The ongoing strength of the dollar is exerting upward pressure on the exchange rate. The dollar index (DXY), which measures the dollar's value against six major currencies, rose by 0.085% to 101.489, marking its third consecutive day of gains.
U.S. stock markets showed mixed results. The Dow Jones Industrial Average closed down 443.87 points (0.86%) at 50,906.05. The S&P 500 index fell by 19.30 points (0.25%) to finish at 7,651.54. In contrast, the tech-heavy Nasdaq Composite Index rose by 63.52 points (0.24%) to close at 26,861.06.
The rise in long-term Treasury yields and strong economic indicators have influenced the New York stock market. The yield on the 10-year U.S. Treasury note surpassed 5.3% during trading, reaching its highest level since May 2002.
Additionally, the U.S. Commerce Department reported that the second-quarter GDP growth rate was revised up to 2.2% (annualized), an increase of 0.7 percentage points from the previous estimate of 1.5%. The ADP National Employment Report released the same day indicated that private sector employment in the U.S. increased by 90,000 in September, exceeding market expectations.
International oil prices rose as negotiations between the U.S. and Iran stalled. November Brent crude futures increased by 0.92% to $103.53 per barrel, while November West Texas Intermediate (WTI) crude rose by 1.16% to $90.42 per barrel.
At the same time, foreign investors in the domestic stock market are showing a selling trend. In the early trading session, foreign investors sold a net 367.2 billion won. From September 23 to 30, they sold a cumulative 8.8192 trillion won worth of stocks over four trading days.
Looking ahead, the exchange rate is expected to rise due to the strong dollar. Min Kyung-won, an economist at Woori Bank, stated, "Given the strong dollar and a decline in risk appetite, we expect the rate to rise, centering around the high 1350s. Although U.S. inflation has slowed, the resilience in growth and employment supports the case for prolonged tightening by the Federal Reserve."
He added, "The stalled negotiations between the U.S. and Iran, leading to a rebound in international oil prices, are also factors dampening risk appetite. If the trend of foreign selling in the domestic stock market continues, along with an increase in real demand buying, upward pressure on the exchange rate could intensify."
* This article has been translated by AI.
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