The won-dollar exchange rate changed its old point and reached the 1,330 won level. In the second half of the year, the ‘high exchange rate’ has been prolonged for a long time as it has hardly fallen from the 1,300 won level. While the US Federal Reserve (Fed) maintains its will to tighten, the won’s value is also falling due to the weakness of other currencies such as the euro and yuan.
According to the financial industry on the 21st, the won-dollar exchange rate closed at 1325.9 won in the Seoul foreign exchange market on the 19th, 5.2 won higher than the closing price of the previous trading day. This is the second highest figure after the 15th of last month (1326.1 won based on the closing price). The exchange rate rose to 1328.8 won at one point during the day, exceeding the previous intraday high (1326.7 won).
In the second half of the year, the won-dollar exchange rate continued to exceed 1,300 won except for six occasions. During this period, the exchange rate rose by 27.5 won (based on the closing price). The main reason for the appreciation of the dollar is that the US Federal Reserve continues to reveal its intentions to tighten by raising interest rates. In the minutes of the Fed’s July Federal Open Market Committee (FOMC) meeting, recently released, attendees reaffirmed their willingness to tighten the currency. Some Fed officials also raise the possibility of a ‘giant step’ (0.75 percentage points increase in interest rates) at the FOMC meeting next month.
The rise in the value of the dollar can also be seen in the Dollar Index, which compares the value of the dollar with respect to six major countries. The dollar index rose 0.64% from the previous day to 108.17. As a result, other currencies have depreciated.
The exchange rate of the yuan against the dollar is also on a downward trend. The People’s Bank of China, the central bank of China, announced on the 19th that the exchange rate of the yuan against the dollar was 6.8065 yuan, down 0.39% from the previous day. It is the lowest since September 30, 2020.
For the time being, the won-dollar exchange rate is highly likely not to fall below 1,300 won. There is also the possibility of a rapid rise in the short term. Kim Seung-hyeok, a researcher at NH Futures, said, “We can move sideways during the third quarter.
Reporter Dohyeong Lee [email protected]
[ⓒ 세계일보 & Segye.com, 무단전재 및 재배포 금지]
Source: 경제 by www.segye.com.
*The article has been translated based on the content of 경제 by www.segye.com. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!