Caution Spreads Ahead of US CPI Announcement... Won-Dollar Back to 1430 Level

On the 11th, the won-dollar exchange rate surpassed 1,430 again as caution spread a day before the announcement of the US Consumer Price Index.

On this day, the exchange rate of the Korean Won against the US Dollar in the Seoul foreign exchange market recorded 1,431.40 won as of 9:45 a.m.

The exchange rate opened at 1,434.0 won, up 7.1 won from the previous session, and then slightly decreased to the early 1430 won level.

Amid the ongoing aftermath of martial law, there was a continued atmosphere of caution about the possibility of higher-than-expected results ahead of the US CPI announcement. As a result, the value of the US Dollar rose for the third consecutive trading day to 106.406.

Min Kyung-won, a researcher at Woori Bank, diagnosed, "After the martial law situation, the Korean Won has become insensitive to existing factors for exchange rate decline, such as the appreciation of the Yuan, and has become particularly sensitive to strong dollar factors."

The foreign exchange authorities plan to make every effort to prevent excessive volatility from spreading in the market. Choi Sang-mok, Deputy Prime Minister and Minister of Strategy and Finance, stated, "We plan to respond sufficiently to reverse market sentiment by closely monitoring financial and foreign exchange market trends and addressing excessive volatility."

Hana Bank predicted, "The continuous emphasis by the foreign exchange authorities on market stability is likely to limit the upper range," and added, "The exchange rate is expected to show main trading movements in the mid-1430 won range, recovering the previous day's decline."

Woo Oh-sung, reporter osyou@wowtv.co.kr