The won-dollar exchange rate against the U.S. dollar opened at 1,493.8 won on the 13th. It rose 3.9 won from the previous transaction day.
The won-dollar exchange rate is expected to rise on the day. The U.S. consumer price index (CPI) for April rose 3.8% from a year earlier, the highest increase since May 2023. As inflation concerns grow, the likelihood that the U.S. Federal Reserve (Fed) will cut the benchmark interest rate within the year has diminished. When demand for the dollar, a safe asset, expands, the value of the won tends to fall and the won-dollar exchange rate tends to rise.
On concerns about U.S. inflation, the likelihood has grown that foreigners will turn net sellers in Korea's stock market. When foreigners sell domestic stocks and convert them into dollars, the won-dollar exchange rate tends to rise. Foreigners were net sellers of 5.4256 trillion won the previous day and 3.4907 trillion won on the 11th.
End-of-war talks between the United States and Iran are also at an impasse. U.S. President Donald Trump rejected Iran's proposal and said he would consider restarting "Project Freedom" to help third-country ships trapped in the Strait of Hormuz get out.