The won-dollar exchange rate has surged into the 1340s.
As of 9:18 a.m. on September 11, the exchange rate in the Seoul foreign exchange market stood at 1347.6 won per US dollar. The rate was trading at 1349.9 won as of 6 a.m., an increase of 10.7 won from the previous day's closing rate of 3:30 p.m.
This rise appears to be influenced by a decline in risk appetite due to soaring international oil prices and rising US Treasury yields.
On Wall Street, the three major indices fell for the fourth consecutive day. The Dow Jones Industrial Average closed down 316.56 points (0.60%) at 50,064.10.
The S&P 500 index dropped 44.66 points (0.58%) to finish at 7,591.70, while the tech-heavy Nasdaq Composite Index fell 171.62 points (0.65%) to close at 26,081.72.
International oil prices continued to rise amid escalating military conflicts in the Middle East. The price of West Texas Intermediate (WTI) crude for October delivery increased by $6.43 (6.69%) to $102.48 per barrel, while Brent crude for November delivery rose by $6.42 (6.34%) to $107.63 per barrel. Both benchmarks reached their highest levels since May 19.
US Treasury yields also surged, with the yield on the 10-year Treasury note surpassing 4.95%, marking the highest level since October 2023.
The yield on the 30-year Treasury note closed at 5.360%, up 7.5 basis points (1 basis point = 0.01 percentage point), the highest since June 29, 2004.
The dollar index, which measures the value of the dollar against six major currencies, rose by 0.263% to 99.074.
The exchange rate is expected to continue rising. Min Kyung-won, an economist at Woori Bank, stated, "With international oil prices surpassing $100 per barrel, rising Treasury yields, and the resurgence of a strong dollar, we anticipate a recovery into the 1350 won range. Speculative demand from offshore investors has confirmed support in the mid-1330s over the past two days, and with the dollar index rising, there is a significant possibility of position adjustments."
* This article has been translated by AI.
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