Dollar-Won Gains Narrow in London Session as Yen Rebounds—Up 4.60 Won

(Seoul=Yonhap Infomax) Ji Yeon Kim – The dollar-won exchange rate pared earlier gains during the London session, trading around 1,470 won.

As of 17:46 KST on the 21st, the dollar-won was quoted at 1,472.50 won, up 4.60 won from the previous session.

Earlier in the day, the pair closed the regular session at 1,475.60 won at 15:30 KST, up 7.70 won from the previous close.

This marks the highest regular session close since April 9, when the rate ended at 1,484.10 won—an over seven-month high.

Heightened risk aversion in the market, a sharp 3.79% drop in South Korea's benchmark KOSPI index, and a widening gain in the Taiwan dollar exchange rate contributed to upward pressure on the dollar-won.

Immediately after the market close, the dollar-won briefly touched a session high of 1,476.10 won.

However, as the dollar-yen exchange rate extended its decline, upward momentum for the dollar-won eased.

On the same day, the Japanese government announced a stimulus package totaling 21.3 trillion yen—the largest since the COVID-19 pandemic.

This announcement prompted some unwinding of short yen positions.

As a result, the dollar-yen fell below the 157 yen level, and the dollar-won trimmed gains to the low 1,470 won range.

Later tonight, speeches are scheduled from John Williams, President of the Federal Reserve Bank of New York; Michael Barr, Federal Reserve Board Governor; Philip Jefferson, Vice Chair of the Federal Reserve; and Lorie Logan, President of the Federal Reserve Bank of Dallas.

Key U.S. economic indicators, including the November S&P Global Manufacturing and Services Purchasing Managers' Index (PMI), the University of Michigan Consumer Sentiment Index, and inflation expectations, will also be released.

At the same time, the dollar index slipped to 100.044.

The dollar-yen was down 0.813 yen at 156.750 yen, while the euro-dollar rose 0.00201 to 1.15453.

The offshore dollar-yuan (CNH) rate declined to 7.1102 yuan.

jykim2@yna.co.kr

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