The won-dollar exchange rate surpassed 1,400 won on the 22nd, marking its highest level in three weeks. This is attributed to a weakening of interest rate cut expectations ahead of the Jackson Hole speech by Jerome Powell, chair of the U.S. Federal Reserve.
According to the Seoul foreign exchange market, as of 9:11 a.m. that day, the won-dollar exchange rate recorded 1,399.5 won, up 1.1 won from the previous day. The rate started at 1,400.0 won, which is 1.6 won higher than the previous day, and peaked at 1,400.5 won.
It is the first time the exchange rate has exceeded 1,400 won during weekly trading since the 1st (1,401.7 won).
The night session the previous day saw the rate rise to 1,403.5 won.
This is analyzed as the result of positive U.S. manufacturing and services sector indicators from the previous day, along with a weakening of expectations for an interest rate cut. Earlier this month, the dollar weakened due to poor U.S. employment data, which made a September rate cut more likely.
However, recent reports indicate that concerns within the Federal Reserve about inflation due to interest rate cuts have grown, changing the atmosphere. According to the Chicago Mercantile Exchange (CME) FedWatch, the possibility of a September rate cut has decreased from 92% a week ago to 75% on that day.
As the value of the dollar rises amid risk-averse sentiment due to corrections in the U.S. stock market, the exchange rate has increased, remaining above 1,378.5 won for six trading days without falling.
The dollar index, which reflects the value of the dollar against six major currencies, recorded 98.601, up 0.24% from the previous day.
The market is focused on the speech by Powell, chair of the Federal Reserve, at the Jackson Hole Symposium, which is set to begin at 11 p.m. Korean time.
During previous Jackson Hole speeches, Powell has signaled regarding the Federal Reserve's monetary policy.
If he suggests an active interest rate cut, it is expected to act as a factor for dollar weakness.
However, some analysts predict that even if he makes comments related to interest rate cuts, a strong message may not be conveyed.
At the same time, the won-yen exchange rate was indicated at 943.42 won per 100 yen, down 4.65 won from the previous day's reference price of 3:30 p.m.
The yen-dollar exchange rate recorded 148.385 yen, up 0.6%.