On the 9th, the won-dollar exchange rate closed at 1,472.3 won, up 5.4 won from the previous trading day.
According to the Seoul foreign exchange market, the rate opened at 1,469.2 won, 2.3 won higher than the previous day's weekly transaction closing price (as of 3:30 p.m.), then expanded its gains to break through 1,470 won in the morning. Just before the close, it also topped 1,472 won.
The rise in the exchange rate was largely driven by continued dollar strength after the New York Federal Reserve released on the 8th (local time) that expected inflation (consumer price outlook one year ahead) stood at 3.2%. If expected inflation remains elevated, additional benchmark rate cuts by the Federal Reserve (Fed) could be delayed.
According to Investing.com, the U.S. Dollar Index (DXY), which measures the dollar against the currencies of six major countries, stood at 99.07 as of 4:04 p.m., holding near the previous day's level. Unlike the previous day, when it fell to 98 intraday, it stayed above 99 throughout the session and drew close to the 100 level.
A weaker yen also fueled the rise in the won-dollar exchange rate. News that a magnitude 7.6 earthquake struck off Aomori Prefecture in Japan weighed on the yen. It is interpreted as reflecting expectations that, if the earthquake damage worsens, the Bank of Japan's (BOJ) rate hikes could be delayed.
Im Hwan-yeol of Woori Bank said, "With dollar strength continuing and yen weakness overlapping, the exchange rate rose slightly," adding, "However, selling pressure from concerns about the top capped the upside, keeping volatility limited." Im also said, "A similar trend is likely to continue through the 11th (Korea time), when the Federal Open Market Committee (FOMC) results are released."