The won-dollar exchange rate against the U.S. dollar is 1,486.4 won at 9 a.m. on the 16th. That is up 1.7 won (0.11%) from the prior trading week's closing transaction price.
There is an outlook that the rate will edge down to around 1,480 won on the day. The dollar is weakening as the likelihood of a U.S. benchmark rate hike has diminished. The U.S. producer price index for June fell 0.3% from the previous month. Contrary to the market's "no change" projection, it posted a decline. John Williams, president of the New York Federal Reserve, also mentioned the possibility of holding rates. If the United States does not raise rates, currencies such as the won can strengthen.
Risk asset investment sentiment is continuing. On the 15th (local time), all three major indexes rose and finished trading on the New York stock market. The Standard & Poor's (S&P) 500 rose 0.38% from the prior session, the Nasdaq composite gained 0.62%, and the Dow Jones Industrial Average added 0.29%.
An effect is also expected from SK hynix's American depositary receipt (ADR) listing. If the $26.5 billion that SK hynix raised through the ADR listing is converted into won, the increase in dollar supply would have the effect of pushing the exchange rate lower. Min Kyung-won, a researcher at Woori Bank, said, "SK hynix ADRs surged 27% in New York," and added, "We also expect continued inflows of foreign funds, which turned to net buying the day before."