On the 26th, the won-dollar exchange rate opened in the 1,460-won range for the first time in four sessions. The dollar weakened as hopes grew for an end to the Russia-Ukraine war and concerns about U.S. inflation eased.
In the Seoul foreign exchange market that day, the won-dollar rate opened at 1,465 won, down 7.4 won from the prior session's weekly transaction closing price (as of 3:30 p.m.). It was the first open in the 1,460-won range since on the 20th (1,467.4 won). Right after the open, the rate extended its decline, falling to as low as 1,459.1 won as of 9:39 a.m.
Overnight, as expectations grew for an end to the war between Russia and Ukraine, the dollar turned weaker. U.S. President Donald Trump said at the White House "turkey pardon" event ahead of Thanksgiving (on the 27th), "I think we are getting very close to an agreement on an end-of-war plan."
On hopes for an end to the war, the dollar's value fell. The dollar index (DXY), which shows the dollar's value against the currencies of six major countries, was at 99.832, down 0.01% from the previous day. It fell below the baseline of 100 for the first time in five sessions. When this figure falls below 100, it means the dollar is weaker against major currencies.
Easing U.S. inflation also pulled the rate down. The U.S. Department of Commerce said on the 25th (local time) that September retail sales rose 0.2% from the previous month. That missed the market forecast (0.3%), and as a result, some of the factors that would make the Federal Reserve (Fed) hesitate to cut rates due to inflation concerns have eased.
Meanwhile, the foreign exchange authorities are heightening caution against intervention while stressing their commitment to market stability. Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance, is scheduled to hold a press briefing at 10 a.m. that day to deliver a message for stabilizing the foreign exchange market. At the event, the foreign exchange authorities are expected to reaffirm their commitment to market stability.