The won-dollar exchange rate is fluctuating around the 1,340 won mark.
As of 9:30 a.m. on October 16, the exchange rate in the Seoul foreign exchange market is 1,343.1 won per U.S. dollar. The rate was recorded at 1,342.0 won, down 2.6 won from the previous day's closing price, as of 6 a.m.
This decline is attributed to falling U.S. Treasury yields and a weaker dollar overnight. On October 15, the yield on the 10-year U.S. Treasury note fell by 12.7 basis points to 5.060%. The yield on the 30-year note also dropped by 11.7 basis points.
The dollar index (DXY), which measures the value of the U.S. dollar against six major currencies, decreased by 0.54% to 102.00.
Major U.S. stock indices rose across the board. The Dow Jones Industrial Average closed up 556.21 points, or 1.08%, at 52,177.69.
The S&P 500 index increased by 25.12 points, or 0.33%, to finish at 7,744.06, while the Nasdaq Composite rose by 20.16 points, or 0.08%, closing at 26,713.03.
In the domestic market, foreign investors continued to sell off. Early in the trading session, foreign investors sold a net 361.9 billion won in the KOSPI.
The exchange rate is expected to fall below 1,340 won. Min Kyung-won, an economist at Woori Bank, stated, "We anticipate that the dollar's weakness and export negotiation volumes will push the rate below 1,340 won."
He added, "The fact that the dollar did not respond to factors that could increase its value suggests a trend of reducing previously accumulated aggressive long positions on the dollar. Additionally, the steady inflow of negotiation volumes due to strong semiconductor exports, along with the strengthening of the yen, which is a leading Asian currency, will exert upward pressure on the won."
* This article has been translated by AI.
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