As expectations grew that the United States and China would engage in tariff negotiations, the won-dollar exchange rate started to decline. The slowdown in U.S. employment indicators also contributed to easing the strength of the global dollar.
According to the Seoul foreign exchange market on the 5th, the exchange rate opened at 1,453.5 won, down 9.4 won from the previous transaction day's closing price (3:30 p.m. 기준) of 1,462.9 won. This marked the first time the exchange rate started at the 1,450 won level since the 31st of last month (1,456.4 won). As of 10:23 a.m., it further declined to 1,450.9 won.
It appears that the dollar weakened as the U.S. government postponed the imposition of tariffs on Mexico and Canada for one month and left room for 'negotiation' regarding tariffs on China. The White House also noted that a call between President Trump and Chinese President Xi Jinping would be held soon, increasing expectations for negotiations.
U.S. employment indicators, which fell short of market expectations, also fueled the dollar's weakness. According to the Job Openings and Labor Turnover Survey (JOLTs) released by the U.S. Department of Labor on the 4th (local time), job openings in the U.S. for December of last year amounted to 7.6 million, a decrease of 556,000 from the previous month (8.156 million). This significantly missed the market forecast of 8.01 million.
The dollar index (DXY), which indicates the value of the dollar against six major currencies, is in a downward trend. According to Investing.com, the dollar index was recorded at 107.93 as of 10:18 a.m. The drop is significant compared to the 109.88 it rose to on the 3rd.
In contrast, Asian currencies are strong. The dollar-yen exchange rate is in the 154 yen range, while the dollar-yuan exchange rate is at 7.17 yuan. Both have decreased compared to the previous day (dollar-yen exchange rate in the 155 yen range, dollar-yuan 7.25 yuan range).
Min Kyung-won, a researcher at Woori Bank, said, "Today, the dollar-won is expected to attempt to fall below 1,450 won," adding that "Expectations for a breakthrough in the trade dispute through negotiations and the decline in government bond yields due to weak job openings have led to a weakening of the dollar, easing the pressure of a strong dollar."