input2024.04.24 16:58
correction2024.04.24 16:58
As economic indicators in the United States appeared to be sluggish, the won-dollar exchange rate fell by nearly 10 won (the value of the won rose). This is believed to be due to growing expectations that the U.S. will cut interest rates to encourage an economic rebound.
On the 24th, in the Seoul foreign exchange market, the won-to-dollar exchange rate closed at 1,369 won and 20 won, down 9 won and 10 won from the previous day. It has been falling for three consecutive trading days since 1382 won20 won on the 19th. The drop was the largest since the 11 Won 90 match on the 18th. It has been about two weeks since the 11th (1364 won 10 years ago) that the exchange rate entered the 1,360 won range.
On this day, the exchange rate opened at 1,372 won, down 6 won and 30 won from the previous day due to expectations of an interest rate cut due to sluggish economic indicators in the United States. While the US manufacturing Purchasing Managers’ Index (PMI) forecast for April was below the baseline of 50, the Eurozone’s composite PMI preliminary value was 51.4, exceeding market expectations, resulting in a weakening dollar.
The exchange rate even fell to 1,367 won and 40 won at one point during the trading day. As risk preference sentiment recovered, foreigners made net purchases of domestic stocks, supporting the strength of the won. As of 3:30 p.m. on this day, foreigners made a net purchase of 494.8 billion won in the stock market.
At the same time, the won-yen fiscal exchange rate was 883 won and 84 won per 100 yen. It was 6 won and 74 won lower than the standard price (890 won and 58 won) at 3:30 p.m. the previous day. This is due to the low value of the yen compared to the dollar. The yen-dollar exchange rate rose to 154.96 yen per dollar in the Tokyo foreign exchange market during the day, hitting the highest level of the year. Japanese Finance Minister Shunichi Suzuki expressed caution at a press conference the day before, saying, “We are watching with high tension,” and “We will respond appropriately while communicating closely with the relevant authorities in each country,” but the effect was limited.
Treasury bond interest rates rose all at once. On this day, in the Seoul bond market, the three-year maturity treasury bond interest rate closed at 3.509%, up 0.020% from the previous trading day. The 10-year interest rate rose 0.020 percentage points to 3.645% per year. The 5-year and 2-year notes rose 0.023% point and 0.007% point, respectively, and closed at 3.579% and 3.509% per year.
Reporter Kang Jin-gyu [email protected]
Tags: Expectations #U.S interest rate cut grown .. exchange rate dropped won days
