Dollar-won amid sharp rise in U.S. Treasury yields; 1,508.70won closes
20The dollar-won exchange rate edged up slightly in overnight trading and 1,508.70closed at won. A sharp rise in U.S. Treasury yields was cited as the backdrop.
20The dollar-won exchange rate edged up slightly in overnight trading. The closing rate was 1,508.70won. Trading was influenced by developments in the New York market.
The sharp rise in U.S. Treasury yields was cited as the main factor behind the currency’s gain. Higher Treasury yields acted as a factor that relatively strengthened the dollar. This trend affected demand for dollars in the South Korean market.
Participants in the Seoul foreign exchange market watched price movements in New York and responded accordingly. The won-dollar level established before the domestic market opened was reflected in that day’s closing rate. Trading volume and flows moved sensitively in response to changes in overseas interest rates.
The day’s exchange-rate movements directly affect export and import settlements and the cost of raising foreign currency. A weaker won changes both the foreign-exchange gains of exporting companies and the cost burdens of importing companies. Across financial markets, interest-rate movements were seen to be linked to exchange rates.
Exchange rates may fluctuate further depending on overseas bond yields and trends in global demand for dollars. Market participants are monitoring overseas interest-rate indicators and foreign-exchange supply and demand. Specific responses vary according to each company’s and investor’s currency-hedging strategy.
Sources: 연합뉴스 경제
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