Dollar-Won Exchange Rate Surges Over 10 Won in Night Trading, Closes at 1,540.00 Won

The dollar-won exchange rate surged by more than 10 won during night trading.

As the dollar index gained further momentum during the London session, the dollar-won exchange rate climbed vertically to the 1,540 won level.

At 2:00 a.m. today, the dollar-won exchange rate closed at 1,540.00 won, up 26.60 won from the previous Seoul foreign exchange market closing price.

Compared to the closing price of 1,527.10 won in the daytime session, this marks a sharp increase of 12.90 won.

The dollar-won exchange rate, which began to rise during the regular Seoul session following the U.S. Federal Open Market Committee (FOMC) signaling a hawkish interest rate hike the previous day, further expanded its gains as it moved through the London session into the New York session.

The dollar-won followed suit as the dollar index surpassed the 100 mark and extended its gains to 100.825 during the London session.

With the dot plot released by the FOMC projecting interest rate hikes within the year, bets on a 25 basis point (bp) increase in the base interest rate by the end of December have strengthened in the federal funds rate futures market.

This serves as a factor putting upward pressure on both the dollar index and the dollar-won exchange rate.

The Bank of Korea has also signaled interest rate hikes, with projections suggesting up to four increases of 25bp each in this cycle.

However, the market sentiment is that this alone has limitations in suppressing the dollar-won exchange rate.

Lee Hardman, a senior currency analyst at MUFG, stated, "The Fed's hawkish policy announcement has the potential to trigger a bullish breakout for the dollar," adding, "The U.S. dollar has been supported by a sharp upward adjustment in short-term interest rates."

At 2:51 a.m., the dollar-yen exchange rate was trading at 161.403 yen, and the euro-dollar exchange rate was at 1.14648 dollars.

The offshore dollar-yuan exchange rate was moving at 6.7762 yuan.

The yen-won cross rate stood at 945.87 won per 100 yen, and the offshore yuan-won exchange rate was trading at 225.32 won.

For the day, the intraday high for the dollar-won exchange rate was 1,541.30 won, and the low was 1,519.30 won.

The fluctuation range was 22.00 won.

The total spot exchange trading volume, including night trading, amounted to 14.411 billion dollars combined between Seoul Money Brokerage Services and Korea Money Brokerage.
※ Please note: This article was translated by AI and may contain errors.