The won-dollar exchange rate is holding steady in the 1340s amid concerns surrounding the U.S. midterm elections.
As of 9:14 a.m. on November 4, the exchange rate in the Seoul foreign exchange market stood at 1346.1 won per U.S. dollar. Earlier, at 6 a.m., the rate was recorded at 1345.1 won, up 4.1 won from the previous day's closing rate.
This increase is attributed to the strong dollar influenced by the anticipation of the midterm election results. The dollar index, which measures the dollar's value against six major currencies, rose by 0.06% to 101.87 overnight.
In the U.S., the New York stock market showed mixed results as technology stocks rebounded after a day, reflecting the uncertainty surrounding the midterm elections. The Dow Jones Industrial Average closed down 197.26 points (0.38%) at 51,786.72.
The Standard & Poor's 500 index rose by 27.52 points (0.36%) to close at 7,568.92, while the tech-heavy Nasdaq Composite gained 207.65 points (0.83%) to finish at 25,372.01.
International oil prices fell for the second consecutive day amid waning expectations. Brent crude for December delivery ended down 1.12% at $103.60 per barrel, while West Texas Intermediate (WTI) for December delivery closed down 0.38% at $96.09 per barrel.
The exchange rate is expected to rise further. Min Kyung-won, an economist at Woori Bank, stated, "Despite the revival of the AI rally amid uncertainty over the midterm election results, the global strong dollar is likely to push the rate into the mid-1340s."
He added, "While the semiconductor sector's stock prices have successfully rebounded, the recent stock market recovery is linked to rising treasury yields rather than a weak dollar. The actual demand for dollars in the domestic market, driven by import payments and increased overseas stock investments by residents, is expected to contribute to the rise in the exchange rate."
* This article has been translated by AI.
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