The won-dollar exchange rate jumped by nearly 12 won, breaking through the 1,460-won level. On a weekly session basis (9 a.m.–3:30 p.m.), it was the highest level in seven months. As the yen, which moves in tandem with the won, weakened, analysts said the won-dollar rate rose.
According to the foreign exchange market on the 11th, the won-dollar exchange rate ended transaction at 1,463.3 won, up 11.9 won from the previous day. It was the highest closing level since Apr. 9, when it was 1,484.1 won.
The won-dollar rate opened at 1,456.4 won, up 5.0 won from the previous day, and broke through the 1,460-won level at 9:46 a.m. It rose to as high as 1,467.5 won in the afternoon but pared gains before the weekly session close.
The day's won-dollar rate is interpreted as being influenced by the weak yen. The previous day, Prime Minister Sanae Takaichi of Japan held the first growth strategy meeting. According to local media, the Takaichi administration set a goal at the meeting of presenting a tax policy direction that would lead to investment promotion. As Japan showed a stance of expansionary fiscal policy, the yen-dollar rate climbed to 154.49 yen per dollar, hitting the record high since February this year.
Min Kyung-won, a Woori Bank researcher, said, "Since 2022, a rivalry mechanism between the dollar and non-dollar currency has formed, and the safe-haven yen and the risk-asset won have shown a strong tendency to move together," adding, "The yen's weakness strengthened the U.S. dollar, and the won followed this trend."
There are also forecasts that the yen will fall further by year-end. JPMorgan Chase Bank, the largest bank in the United States, set the year-end yen-dollar rate at 156 yen per dollar in a report published on the 31st of last month. The previous forecast was 142 yen per dollar, but the yen's value was sharply revised down. Mitsubishi UFJ Bank, one of Japan's three megabanks, also revised its year-end yen-dollar rate from 144 yen to 152 yen per dollar.