The won-dollar exchange rate has slightly decreased, fluctuating in the 1340s.
As of 9:52 a.m. on the 14th, the exchange rate in the Seoul foreign exchange market is 1,344.6 won per U.S. dollar. Earlier, at 6 a.m., the rate was trading at 1,344.1 won, down 1.8 won from the previous day's closing rate of 3:30 p.m.
The strengthening of the yen, in response to concerns over potential interest rate hikes by the U.S. Federal Reserve, is seen as contributing to the rise in the value of the won. At the same time, the dollar index, which measures the value of the dollar against six major currencies, rose 0.06% to 99.18. The yen-dollar exchange rate is trading at 153.65 yen, up 0.14%.
On the 11th, international oil prices fell. Brent crude for November delivery dropped 2.81% to $104.61 per barrel, while West Texas Intermediate (WTI) for October delivery fell 2.37% to $100.05 per barrel. This marks the first decline in six and nine trading days, respectively.
In the domestic stock market, foreign investors are showing a selling trend. Early in the session, foreign investors have net sold 1.5227 trillion won worth of stocks in the securities market.
The exchange rate is expected to decline initially due to the yen's strength before rebounding. Min Kyung-won, an economist at Woori Bank, stated, "Amid concerns over Fed rate hikes, the yen's strength triggered by bets on Bank of Japan (BOJ) rate increases is likely to attempt to dip below 1,340 won before rebounding."
He added, "With core inflation exceeding expectations, concerns over Fed rate hikes have increased, and in the global foreign exchange market, the BOJ's rate increases are being priced in more aggressively than those of the Fed. It is highly likely that Asian currencies, including the won, will also be influenced by the yen's strength."
* This article has been translated by AI.
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