As concerns over US inflation heighten the possibility of a rate hike by the Federal Reserve (Fed), the won-dollar exchange rate neared 1,350 won this morning (the 11th).

In the Seoul foreign exchange market today, the won-to-US dollar exchange rate was tallied at 1,349.9 won around 8:53 a.m.

This is an increase of 10.7 won from the closing reference rate of 1,339.2 won at 3:30 p.m. the previous trading day.

Following the high growth rate shown by the US Producer Price Index (PPI) for August released the previous day, weight is being given to the possibility of a Fed rate hike.

According to the US Department of Labor, the August PPI rose 0.4% from the previous month and 5.4% from a year earlier.

Core PPI rose 0.2% from the previous month and 4.6% from a year earlier.

As tensions in the Middle East escalate, international oil prices have also risen to the 100 dollar per barrel range.

The previous day, the Wall Street Journal (WSJ) reported that senior aides to President Trump are internally reviewing the possibility that a war with Iran could continue until 2029, near the end of his term.

News also broke that the Houthi rebels have seized the Red Sea coastal city of Mocha, taking a step closer to controlling the Bab al-Mandab Strait, a strategic chokepoint.

Consequently, West Texas Intermediate (WTI) for October delivery closed at 102.48 dollars per barrel on the New York Mercantile Exchange the previous day, and Brent crude for November delivery recorded 107.63 dollars.

Both are the highest figures since May 19.

At the same time, the dollar index, which shows the value of the US dollar against the currencies of six major countries, rose 0.022 to 99.089.

The won-yen cross rate fell 1.22 won to 873.49 won per 100 yen.

The yen-dollar exchange rate fell 0.354 yen to 155.831 yen.

(Photo: Yonhap News)