The won-dollar exchange rate is fluctuating in the low 1340s.
As of 9:15 a.m. in the Seoul foreign exchange market, the exchange rate stands at 1339.7 won per U.S. dollar. Earlier, at 6 a.m., it was trading at 1344.5 won, up 7.0 won from the previous day's closing price.
Overnight, the dollar rose due to inflation concerns and tightening fears from the U.S. Federal Reserve. The dollar index, which measures the dollar's value against six major currencies, increased by 0.57% to 102.254.
On October 10, the U.S. Department of Labor reported that the Consumer Price Index (CPI) rose by 0.4% compared to the previous month, while the core CPI, excluding volatile food and energy prices, increased by 0.3%, both exceeding market expectations of 0.3% and 0.2%, respectively.
Federal Reserve officials have indicated the need for aggressive tightening. Christopher Waller, a Fed governor, mentioned the necessity of a 'big step' increase of 50 basis points in December if inflation persists.
According to the CME FedWatch tool, the futures market sees a 90.9% chance that the Fed will raise interest rates in December.
As a result, U.S. stock markets fell across the board. The Dow Jones Industrial Average closed down 157.86 points (0.30%) at 52,231.89.
The S&P 500 index fell by 29.01 points (0.38%) to close at 7,520.93, while the tech-heavy Nasdaq Composite dropped 187.26 points (0.74%) to finish at 25,065.87.
International oil prices continued to decline, reaching their lowest levels since August 31. January Brent crude futures closed down 1.17% at $91.49 per barrel, while December West Texas Intermediate (WTI) crude fell by 0.93% to $86.04 per barrel, marking the lowest levels for both since August 31.
The exchange rate is expected to rise today. Min Kyung-won, an economist at Woori Bank, stated, "Today’s exchange rate is expected to rise, reflecting the strong dollar influenced by the Fed's December tightening discussions and the U.S. CPI shock."
He added, "The options market, which has been betting on a rise in the won-dollar exchange rate, will likely see speculative dollar demand increase, driven by domestic real demand such as payments by importers and overseas stock investments by residents."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.