The won-dollar exchange rate is trading in the 1,340 won range.
As of 9:11 a.m. on October 15, the exchange rate in the Seoul foreign exchange market is 1,342.1 won against the U.S. dollar. The rate at 6 a.m. today was 1,342.3 won, up 4.0 won from the previous day's closing rate.
The slight increase appears to be linked to the release of high inflation data and a risk-averse sentiment. On October 14 (local time), the U.S. Department of Labor reported that the Consumer Price Index (CPI) for September rose 3.7% compared to the same month last year, exceeding the experts' forecast of 3.6%.
The higher-than-expected CPI has intensified pressure for additional interest rate hikes from the Federal Reserve, leading to a decline in the New York Stock Exchange. The Dow Jones Industrial Average closed down 48.62 points (0.09%) at 51,621.48.
The Standard & Poor's (S&P) 500 index fell 86.51 points (1.11%) to close at 7,718.94, while the Nasdaq Composite Index dropped 511.51 points (1.88%) to finish at 26,692.87.
U.S. Treasury yields showed volatility. After a sharp rise due to inflation concerns, they retraced gains as demand for safe-haven assets increased following the stock market decline.
The yield on the 10-year Treasury note was 5.189% as of 3 p.m., down 2.7 basis points from the previous close.
The dollar showed strength, with the Dollar Index (DXY), which measures the dollar's value against six major currencies, rising 0.32% to 102.537. During the session, it peaked at 102.94, reaching its highest level in 18 months.
International oil prices continued to rise amid heightened geopolitical tensions in the Middle East and warnings from the International Energy Agency (IEA) about supply shortages. Brent crude for December delivery closed at $106.06 per barrel, up 0.35%, while West Texas Intermediate (WTI) for November delivery rose 1.01% to $95.09 per barrel, marking five consecutive days of increases.
In the domestic stock market, foreign investors continued to sell off in the early session, with net sales of 355.6 billion won in the securities market.
The exchange rate is expected to remain stable around the 1,340 won mark. Min Kyung-won, an economist at Woori Bank, stated, "Despite strong dollar pressures, the upper limit is constrained by export negotiations, leading to fluctuations around the 1,340 won level."
He added, "With the U.S. CPI exceeding expectations, expectations for Fed rate hikes have increased, and the dollar's strength may attract offshore long positions. Factors that have previously supported the won's strength may weaken as a result."
* This article has been translated by AI.
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