KRW-USD Exchange Rate Rises Despite US Inflation Slowdown [Hankyung FX Market Watch]

Despite the slowdown in US inflation rate, the KRW-USD exchange rate slightly increased (Korean won value decreased). This appears to be due to a preference for safe-haven assets as global trade wars show signs of intensifying.

On the 13th, the KRW-USD exchange rate (as of 3:30 PM) in the Seoul foreign exchange market closed weekly trading at 1453.80 won, up 2.80 won from the previous day. The exchange rate started at 1450.50 won, down 50 jeon, and mostly remained at similar levels. In the afternoon, it closed slightly higher as settlement demand flowed in.

Analysts interpreted that despite February's US Consumer Price Index (CPI) inflation rate of 2.8% falling below market expectations and the strong performance of the New York stock market, the preference for safe-haven assets intensified due to concerns about trade wars. Overnight, US President Donald Trump took a hard stance regarding the European Union's (EU) retaliatory tariff measures, stating, "Of course I will respond" and "We will win that money battle."

The Dollar Index, which shows the value of the dollar against six major currencies, remains at the same level as the previous day at 103.57.

As of 3:30 PM, the KRW-JPY cross rate recorded 984.43 won per 100 yen. This is up 4.52 won from the previous day's reference rate (979.91 won) at the same time. The JPY-USD exchange rate is down 0.42% at 147.63 yen.

Reporter Jinkyu Kang josep@hankyung.com