On the 4th, the won started at 1,467 won against the U.S. dollar. The move was largely due to dollar weakness after soft U.S. employment data.
In the Seoul foreign exchange market that day, the won-dollar rate opened at 1,467 won, down 1 won. It widened its decline right after the open to fall to as low as 1,464.8 won, but then rebounded and was at 1,466.8 won as of 9:32 a.m.
The drop in the exchange rate was largely driven by U.S. employment indicators released overnight that were weaker than expected. According to the National Employment Report released by Automatic Data Processing (ADP) on the 3rd (local time), private payrolls in November fell by 32,000 from the previous month, missing the market forecast for a 10,000 increase.
As a result, the dollar index (DXY), which shows the dollar's value against the major six currencies, is trending lower. According to Investing.com, the dollar index was at 98.94 as of 9:36 a.m. A reading below 100 indicates the dollar is weaker against major currencies.
Wi Jae-hyeon, an economist at NH Futures, said, "Today's exchange rate will attempt to fall to the low-to-mid 1,460-won range," adding, "Given the downward pressure on the dollar and foreign inflows into the domestic stock market, attempts to push the won-dollar rate lower are expected to continue."