Weekly trading opens at 1,547.3 won, up 4.6 won; oil rebounds to $70s on Strait of Hormuz attack
By Kim Byeo-ri, The Herald Business
The won-dollar exchange rate opened weekly trading above 1,540 won for the second consecutive session Friday, again threatening the 1,550 level.
The rate began Friday's session in the Seoul foreign exchange market at 1,547.3 won, up 4.6 won from the previous close — the second straight day it has opened in the 1,540s, following Thursday's open of 1,543 won. The rate subsequently extended its gains, approaching 1,550 won.
On Thursday, the rate closed at 1,542.7 won, up 0.9 won, marking a second consecutive close in the 1,540s — the highest closing level since March 9, 2009 (1,549.0 won) during the global financial crisis. On a weekly closing basis, the rate has risen for four consecutive sessions since June 19 (1,527 won).
A stronger dollar continues to dominate as concerns over US inflation fuel expectations that the Federal Reserve will raise interest rates. The US Personal Consumption Expenditures price index for May rose 4.1 percent year-on-year, the largest increase since April 2023. The reading matched market forecasts but price pressures remain significant.
The dollar index, which measures the greenback against six major currencies, edged down overnight before turning higher again in the morning. It was last up 0.07 percent at 101.505.
International oil prices also rebounded after a vessel was struck in the Strait of Hormuz. Crude had fallen to pre-war levels through Thursday on progress in US-Iran negotiations, but bounced back overnight to trade above $70 per barrel.
Persistent foreign net selling of domestic shares is also pushing the exchange rate higher. As of 9:30 a.m. Friday, foreign investors had net sold 1.1394 trillion won ($737 million) worth of shares on the Kospi.
kimstar@heraldcorp.com
