The won-dollar exchange rate is trading in the 1380s.
As of 9:26 a.m. in the Seoul foreign exchange market, the exchange rate for the Korean won against the U.S. dollar is 1,383.4 won. Earlier, at 6 a.m., the rate was 1,386.0 won, down 0.5 won from the previous session.
At the same time, the dollar index (DXY), which reflects the value of the dollar against six major currencies, recorded a slight decrease of 0.01 to 98.79.
In the domestic stock market, foreign investors are showing a selling trend, with net sales of 941.2 billion won in the securities market.
The exchange rate is expected to rise today. Analysts predict that rising U.S. Treasury yields and concerns over protectionism will weaken risk appetite.
On August 20 (local time), the yield on 30-year U.S. Treasury bonds closed at 5.24%, up 0.04% from the previous trading day. The yield on 10-year U.S. Treasury bonds also rose by 0.05 percentage points to 4.70%.
Min Kyung-won, an economist at Woori Bank, stated, "The theory of Treasury buybacks is causing U.S. Treasury yields to rise, which is likely to support the dollar that had previously declined last week. The inflow of offshore short covering, which has led to actual demand for payments and overseas stock investments, will likely drive upward pressure on the exchange rate today."
* This article has been translated by AI.
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