On the 16th, the won-dollar exchange rate rose by more than 5 won, closing at the 1380 won level for the third straight day. This is due to the strong dollar influenced by waning expectations of interest rate cuts in the United States.
In the Seoul foreign exchange market that day, the won-dollar exchange rate ended the week at 1,385.7 won, up 5.5 won from the previous day. The closing rate has remained in the 1380 won range for the third consecutive day since the 14th (1,381.2 won). The exchange rate started at 1,385.5 won, rising by 5.3 won, before fluctuating in the 1380 won range.
Overnight, it was noted that prices have risen due to the United States' tariff policy, leading to a retreat in expectations for interest rate cuts by the Federal Reserve (Fed). According to the U.S. Department of Labor, the Consumer Price Index (CPI) for June rose 2.7% compared to the same month last year, marking the highest rate of increase since February (2.8%).
U.S. President Donald Trump is ramping up tariff pressures. President Trump has stated that he plans to impose item tariffs on foreign pharmaceuticals as early as the end of this month. He also mentioned that tariffs will be imposed on semiconductors around the same time.
With the delay in U.S. interest rate cuts and tariff pressures coinciding, the dollar continues to strengthen. The dollar index, which indicates the dollar's value against six major currencies, rose by 0.49% to 98.481.
As of 3:30 p.m., the won-yen exchange rate is 931.59 won per 100 yen, down 2.97 won from the reference rate of 934.56 won the previous day. The dollar-yen exchange rate rose by 0.73% to 148.744 yen.
Wi Jae-hyun, an economist at NH Futures, said, "This CPI gives a glimpse into the potential for inflation to rise along with prices following the actual implementation of reciprocal tariffs, and it is possible that the strong dollar sentiment will extend as expectations for interest rate cuts revert."