The rise in U.S. Treasury yields has stabilized, and the value of the yen has rebounded, causing the won-dollar exchange rate to drop into the 1360s.
As of 9:13 a.m. on September 3, the exchange rate in the Seoul foreign exchange market is 1361.5 won per U.S. dollar. Earlier, at 6 a.m., the rate was trading at 1359.2 won, down 9.5 won from the previous day's closing price. Overnight, the exchange rate fell to the 1350s, setting a new low for the year.
This decline is attributed to the stabilization of rising U.S. Treasury yields, which has led to a weaker dollar. The yield on the U.S. 10-year Treasury note, which had surged recently, peaked at 4.821% during the day before retreating to 4.793%.
The dollar index, which measures the dollar's value against six major currencies, fell by 0.12% to 99.565.
International oil prices have continued to rise for three consecutive trading days amid ongoing military tensions between the U.S. and Iran. November futures for Brent crude oil rose by 1.04% to $95.63 per barrel, while October futures for West Texas Intermediate (WTI) crude oil increased by 0.88% to $91.01.
U.S. stock markets closed higher across the board. The Dow Jones Industrial Average finished up 295.07 points (0.56%) at 50,061.95.
The S&P 500 index rose by 35.13 points (0.46%) to close at 7,666.60, while the Nasdaq Composite gained 118.05 points (0.45%) to finish at 20,217.83.
Market analysts expect the exchange rate to attract bargain buying due to the weaker dollar. Min Kyung-won, an economist at Woori Bank, stated, "Despite concerns over dollar weakness and potential Japanese intervention, bargain buying is likely to support the lower end of the exchange rate, which may attempt to re-enter the 1360s. Given the rapid pace of the exchange rate decline, we anticipate an influx of short plays from offshore investors following this trend."
He added, "However, actual demand from importers for low-price purchases is expected to support the lower end of the exchange rate. If market participants perceive 1350 won as a primary support level, accumulation buying in this range could slightly lift the exchange rate."
* This article has been translated by AI.
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