On the 16th, the won-dollar exchange rate rose to the 1,430 won range due to the rebound of the U.S. dollar.
On this day, the won-dollar exchange rate in the Seoul foreign exchange market started at 1,429 won, up 3.5 won from the previous day's weekly transaction closing price (as of 3:30 p.m.). The exchange rate increased immediately after opening, reaching 1,432.7 won as of 9:04 a.m.
The dollar strengthened as the United States began tariff negotiations with major trading partners starting with the European Union. The dollar index recorded 99.92 as of 9:41 a.m., up from the previous day's low of 99.2.
The U.S. Department of the Treasury noted it is reviewing regulatory changes to lower the expense of bond transactions for banks, leading to an increase in U.S. bond prices (decreasing interest rates), which fueled the dollar's strength. Generally, a decline in government bond rates is a factor for dollar weakness, but expectations for a recovery in demand for previously weak dollar assets coincided, resulting in the dollar's strength.
Min Kyung-won, an analyst at Woori Bank, said, "The decline in U.S. long-term government bond rates overnight successfully washed away concerns about the deterioration in demand for dollar assets that became an issue in April, and as the dollar index recovers to 100 points, it will stimulate long positions in dollars both domestically and abroad."
Wi Jae-hyun, an economist at NH Futures, mentioned, "Due to the recent decline in the trustworthiness of U.S. assets, the abnormal gap between U.S. Treasury yields and the dollar has gradually narrowed," adding, "As a result, the dollar is expected to show rebound movements again during today's session, and the won-dollar exchange rate is also expected to follow suit."