Won-Dollar Exchange Rate Rises 6.7 Won to 1,345.9 Won Amid High Oil Prices and U.S. Rate Hike Concerns

The won-dollar exchange rate rose today (the 11th) due to factors such as concerns over U.S. interest rate hikes and soaring international oil prices driven by tensions in the Middle East.

In the Seoul foreign exchange market today, the closing price for the won-to-dollar exchange rate at 3:30 p.m. was tallied at 1,345.9 won, up 6.7 won.

The exchange rate climbed to as high as 1,349.9 won around 8:53 a.m. before reversing direction and falling to 1,343.0 won around 1:30 p.m.

Following the release of the U.S. Producer Price Index (PPI) for August the previous day, weight was added to expectations that the Federal Reserve will raise interest rates at the Federal Open Market Committee meeting scheduled for the 15th to 16th (local time).

According to the U.S. Department of Labor, the August PPI rose 0.4% from the previous month and 5.4% from the same month last year.

International oil prices also surged into the 100-dollar-per-barrel range amid forecasts that tensions in the Middle East will be prolonged longer than expected.

At the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for October delivery finished trading at 102.48 dollars per barrel, and November Brent crude recorded 107.63 dollars.

Both mark the highest levels since May 19.

The Wall Street Journal (WSJ) reported that senior aides to President Donald Trump have internally reviewed the possibility that a war with Iran could extend until 2029, near the end of his term.

However, the continuous influx of dollar-selling orders, centered around semiconductor companies, is limiting any further surge in the exchange rate.

Analysts suggest that until the artificial intelligence (AI) investment cycle concludes, dollar selling by exporters may continue steadily rather than occurring temporarily at the end of the month.

The Bank of Japan's willingness for additional monetary tightening and America's wariness against a weak yen also acted as factors supporting the strength of the won.

The previous day, Bank of Japan Policy Board member Masu Kazuyuki stated that the central bank will continue to raise interest rates to prevent the underlying inflation rate from exceeding 2%.

The dollar index, which measures the value of the greenback against six major currencies, stood at 99.035, down 0.034.

The won-yen cross exchange rate was 873.30 won per 100 yen, down 0.19 won.

The yen-dollar exchange rate fell 0.18% to 154.090 yen.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.