The won-dollar exchange rate is holding steady in the mid-1530s amid a sell-off in U.S. tech stocks and pressure from a strong dollar.
As of 9:30 a.m. on June 24, the exchange rate was trading at 1535.2 won against the U.S. dollar.
The rate opened at 1534.9 won, down 4.2 won from the previous trading day, and has fluctuated within a narrow range since then.
Despite a partial recovery in risk appetite following the end of the Middle Eastern conflict, market participants are focusing on the strong dollar pressure from the U.S. and the sluggish domestic stock market. Notably, a sharp decline in domestic semiconductor stocks the previous day has dampened investor sentiment, impacting the New York market as well.
On the New York Stock Exchange, the Dow Jones Industrial Average fell by 0.09%. The S&P 500 and tech-heavy Nasdaq indices dropped by 1.44% and 2.22%, respectively.
Speculation that the U.S. Federal Reserve may implement another interest rate hike in September to combat inflation has led to a wave of profit-taking, particularly in tech stocks.
Additionally, the failure to include South Korea in the Morgan Stanley Capital International (MSCI) developed markets watchlist has added pressure to the won. MSCI acknowledged the efforts of South Korean market authorities to improve regulations but noted that some structural issues raised by investors remain unresolved.
Min Kyung-won, an economist at Woori Bank, stated, "Today's exchange rate will reflect the negative impact of the tech stock sell-off in New York and the exclusion from the MSCI developed markets watchlist, leading to upward pressure during the day. However, demand for currency exchange related to overseas stock investments by retail investors and payment needs from importers will support the lower end of the exchange rate."
* This article has been translated by AI.
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