NDF Falls to 1,467.60/1,468.00 Won—Down 5.60 Won

(Seoul=Yonhap Infomax) Ji Yeon Kim – The one-month dollar-won non-deliverable forward (NDF) contract declined in the New York market.

According to overseas brokers on the 22nd, the one-month dollar-won NDF was last quoted at 1,467.80 won (mid) overnight.

Taking into account the latest one-month swap point of -2.20 won, this represents a decrease of 5.60 won from the previous closing price of 1,475.60 won in the Seoul spot foreign exchange market.

The bid was quoted at 1,467.60 won, while the ask stood at 1,468.00 won.

The U.S. dollar weakened as expectations grew for a Federal Reserve rate cut in December, while speculation about a potential rate hike by the Bank of Japan also weighed on the greenback.

Overnight, John Williams, President of the Federal Reserve Bank of New York, stated that there is still room for further adjustments to the Fed's policy rate in the near term.

Following Williams’ remarks, market expectations for a December rate cut surged sharply.

On the same day, Kazuyuki Masu, Policy Board Member of the Bank of Japan, told a local media outlet that a decision to raise rates is "drawing closer."

He cited two reasons for the need to raise rates: "First, it is not desirable for real interest rates to remain deeply negative," and "Second, in relation to the neutral rate, while many countries have policy rates above the neutral rate, Japan's policy rate remains below it. I strongly believe this needs to be changed quickly."

At the close of trading, the U.S. dollar index edged down to 100.154.

The dollar-yen exchange rate stood at 156.379 yen, while the euro-dollar rate was at 1.15170 dollars.

The dollar-offshore yuan (CNH) rate was 7.1045 yuan.

Key Trend: The dollar-won NDF fell to its lowest level in recent sessions, reflecting growing expectations for a U.S. rate cut and potential policy tightening in Japan.

jykim2@yna.co.kr

(End)