On the 25th, the won to dollar exchange rate is showing a downward trend as expectations grow for a potential cut in the U.S. benchmark interest rate.
As of 9:05 a.m. on that day in the Seoul foreign exchange market, the won to dollar exchange rate is trading at 1,387.1 won, which is 6.1 won lower than the closing price of 1,393.2 won from the previous trading day at 3:30 p.m. It started at 1,385.0 won, down 8.2 won, but the decline has somewhat narrowed since then.
Earlier, Jerome Powell, chair of the U.S. Federal Reserve (Fed), mentioned during the Jackson Hole symposium on the 22nd (local time) that "changes in risk balance could justify adjustments in policy stance." The market regarded this as a more dovish (preferring monetary easing) statement than expected. As risk appetite increased regarding the Fed's forecast for an interest rate cut next month, the New York stock market surged.
The dollar index, which shows the value of the dollar against major currencies of six countries, dipped into the mid-97 range during the day but has slightly rebounded to stay at around 97.897.
However, some analyses suggest that the sense of caution ahead of the scheduled Korea-U.S. summit that night is limiting the decline in the exchange rate.
At the same time, the won to yen exchange rate is at 940.89 won per 100 yen, which reflects an increase of 2.8 won compared to the previous day's standard price of 938.09 won at 3:30 p.m. The yen to dollar exchange rate recorded a rise of 0.46 yen to 147.41 yen.