The won-dollar exchange rate has set new lows for four consecutive trading days, remaining in the mid-1320s.
As of 9:27 a.m. on October 22, the exchange rate in the Seoul foreign exchange market was 1,326.3 won against the US dollar. The rate at 6 a.m. was 1,326.0 won, up 0.8 won from the previous day's closing price.
This slight increase is attributed to demand for low-priced dollar purchases. However, a recovery in risk appetite has kept the rate in the 1320s. Overnight, US stock markets rose across the board, with the Dow Jones Industrial Average closing up 360.21 points (0.69%) at 52,856.09.
The Standard & Poor's 500 index rose by 44.60 points (0.58%) to close at 7,757.17, while the tech-heavy Nasdaq Composite gained 278.04 points (1.05%) to finish at 26,702.86.
The dollar has shown weakness for two consecutive days, with the Dollar Index (DXY), which measures the dollar against six major currencies, falling 0.03% to 101.695.
International oil prices exhibited mixed trends amid rising military tensions in the Middle East and conflicting expectations regarding the resumption of peace talks between Russia and Ukraine. West Texas Intermediate (WTI) crude for December delivery fell 0.68% to $97.15 per barrel, while Brent crude for December delivery rose 0.03% to $108.82 per barrel.
In the early trading session, foreign investors showed a buying advantage in the domestic stock market, with net purchases of 167 billion won in the securities market.
The exchange rate is expected to decline today. Min Kyung-won, an economist at Woori Bank, stated, "Today, the won-dollar exchange rate is projected to fall to the mid-1320s as the risk-on sentiment continues and the supply of dollars in the region remains favorable."
He added, "With cumulative exports this year nearing the $1 trillion mark, the supply of dollars is likely to remain strong for the time being, and expectations for increased dollar supply will support a downward trend in the exchange rate, particularly from offshore short positions."
* This article has been translated by AI.
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