The won-dollar exchange rate is fluctuating in the high 1330s.
As of 9:12 a.m. on October 14, the exchange rate in the Seoul foreign exchange market is 1,338.6 won per dollar. The rate was trading at 1,341.5 won, down 3.6 won from the previous day's weekly trading benchmark as of 6 a.m.
Despite a risk-averse sentiment overnight, the Federal Reserve's cautious stance on interest rate hikes has led to a weakening of tightening expectations.
The dollar weakened as concerns eased over additional tightening from the Fed. The dollar index (DXY), which measures the dollar's value against six major currencies, fell by 0.375% to 102.214.
John Williams, President of the Federal Reserve Bank of New York, stated on October 13 that while it would be appropriate to raise the benchmark interest rate once more this year, he does not foresee the need for further increases in 2027.
The three major U.S. stock indices declined. The Dow Jones Industrial Average closed down 180.45 points (0.35%) at 51,670.10.
The S&P 500 index fell by 1.79 points (0.02%) to 7,805.45, while the Nasdaq Composite dropped 41.52 points (0.15%) to 27,204.38.
International oil prices showed mixed trends due to expectations of increased supply from a diesel trade agreement between the U.S. and Russia, coupled with ongoing military conflicts in the Middle East.
West Texas Intermediate (WTI) crude for November delivery rose by 0.43% to $94.14 per barrel, while December Brent crude fell by 0.90% to $105.69 per barrel.
Today, the exchange rate is expected to rise due to regional dollar demand. Min Kyung-won, an economist at Woori Bank, noted, "The memory semiconductor stocks continued to decline for two consecutive days on the New York market, raising concerns about supply and demand instability in the domestic market, which has a significant semiconductor weighting, and the likelihood of continued foreign net selling."
He added, "The rise in international oil prices and the influx of dollar demand will also put pressure on the won, but the upper limit is expected to be constrained around the mid-1340s due to semiconductor export negotiations and a surplus of dollar supply."
* This article has been translated by AI.
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