The won-dollar exchange rate remains in the 1330s despite rising U.S. Treasury yields and a strong dollar.
As of 9:37 a.m. on October 12, the exchange rate in the Seoul foreign exchange market is 1,337.6 won per dollar. The rate was trading at 1,342.0 won, down 0.8 won from the previous session's closing price.
During the holiday period, international oil prices saw a slight increase. On October 9, West Texas Intermediate (WTI) crude for November delivery rose by 0.39% to $91.85 per barrel, while December Brent crude futures increased by 0.42% to $104.72 per barrel.
Concerns over maritime transport instability in the Strait of Hormuz and disruptions to oil production in the U.S. Gulf of Mexico due to hurricanes have contributed to these price changes.
The dollar also showed strength, with the Dollar Index (DXY), which measures the dollar's value against six major currencies, rising by 0.126% to 102.229.
During the holiday, U.S. Treasury yields remained elevated. The yield on the 10-year Treasury note exceeded 5.36%, marking the highest level since 2002. The 30-year yield also climbed to around 5.73%, the highest in 24 years.
At the same time, foreign investors are showing a selling trend in the domestic stock market. Early in the session, foreign investors have net sold 261.3 billion won in the securities market.
The exchange rate is expected to rise today. Min Kyung-won, an economist at Woori Bank, stated, "Today’s exchange rate is anticipated to recover the mid-1340 won support level due to the resumption of a strong dollar during the holiday and the poor performance of semiconductor stocks. The continued foreign net selling in the domestic market will likely increase downward pressure. However, the selling pressure from export companies, particularly in the semiconductor sector, will support the upper range, as the demand for currency exchange from exporters has shifted to year-round selling rather than being limited to month-end."
* This article has been translated by AI.
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