The won-dollar exchange rate is trading in the 1,380 won range as US inflation and domestic demand remain robust.
As of 9:11 a.m. in the Seoul foreign exchange market, the exchange rate for the Korean won against the US dollar is 1,385.1 won. At 6 a.m. that day, the rate was recorded at 1,386.3 won, up 1.5 won from the previous day's closing price.
The recent US inflation data, which slightly exceeded market expectations, is believed to have contributed to the dollar's strength. The Personal Consumption Expenditures (PCE) price index for July rose 3.7% compared to the same month last year, slightly above the market forecast of 3.6%.
The dollar index, which measures the value of the dollar against six major currencies, rose 0.267% to 99.147.
The New York stock market closed slightly lower. The Dow Jones Industrial Average finished down 113.52 points (0.21%) at 53,463.88.
The Standard & Poor's (S&P) 500 index fell 1.58 points (0.02%) to close at 7,675.70, while the Nasdaq Composite Index dropped 21.10 points (0.08%) to finish at 26,130.20.
International oil prices declined. October futures for Brent crude fell 0.84% to $87.84 per barrel, while West Texas Intermediate (WTI) crude dropped 0.16% to $82.23 per barrel.
In the domestic stock market, foreign investors are showing net buying activity. Early in the session, foreign investors purchased 208.8 billion won in the securities market.
The exchange rate is expected to rise slightly. Min Kyung-won, an economist at Woori Bank, stated, "With the US PCE inflation exceeding expectations and domestic demand remaining strong, US Treasury yields are rising, leading to a strengthening of the dollar. This is likely to exert downward pressure on the won, contributing to weakness in major Asian currencies such as the yen and yuan."
* This article has been translated by AI.
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