On the 8th, the won-dollar exchange rate ended weekly trading at 1,450.6 won, up by nearly 5 won against the U.S. dollar, crossing 1,450 won for the first time in nine sessions.
In the Seoul foreign exchange market, the won-dollar rate opened at 1,449.7 won, up 3.9 won from the previous day's weekly close (as of 3:30 p.m.), held in the 1,449-won range, then rose just before the close to finish at 1,450.6 won. On a closing basis, it topped 1,450 won for the first time in nine sessions since on the 23rd of last month (1,483.6 won).
Overnight, news that the U.S. services sector improved at the fastest pace in a year and two months kept the dollar strong. According to the Institute for Supply Management (ISM), the services Purchasing Managers' Index (PMI) for December last year came in at 54.4, marking a record high since Oct. 2024 (56). The PMI uses 50 as the threshold to judge expansion and contraction: above 50 indicates expansion and below 50 indicates contraction.
The U.S. dollar index (DXY), which shows the value of the dollar against the currencies of six major countries, is rising. According to Investing.com, the DXY, which was around 98.2 at about 1 p.m. the previous day, rose to 98.7 as of 3:50 p.m. The fallout lifted the dollar-yen (dollars per yen) rate from the low 156-yen range to 156.56 yen, while the euro-dollar (euros per dollar) fell from the $1.17 range to the $1.16 range.
However, caution over foreign exchange authorities' market intervention limited further gains. The rate threatened 1,485 won in mid-December last year, then fell by more than 50 won over three days on strong verbal intervention by the authorities. It later climbed back into the 1,440-won range, but with ongoing caution about intervention, large jumps as seen in the past have not appeared.
The possibility that the U.S. Supreme Court could issue a ruling tomorrow that will decide the fate of the "Trump tariff policy" also supported the top of the exchange-rate range. According to Reuters on the 6th (local time), the court said on its website, "On the 9th, when the justices are present, we may announce decisions in cases under consideration." While it did not specify which cases, Reuters noted that it is highly likely the reciprocal tariff case is included.
Park Sang-hyun, a senior advisor at iM Securities, said, "Today the rate opened in the high 1,440-won range and moved without major changes," adding, "Overall, there seem to be no major drivers to move the rate, and market participants appear to be taking a wait-and-see stance."
Park said, "There is a possibility that the U.S. Supreme Court will issue a ruling tomorrow related to the reciprocal tariff, and with the U.S. employment report and inflation indicators scheduled to be released from this weekend into next week, it is difficult to predict the direction of the exchange rate."