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

(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 24th, the one-month dollar-won NDF was last quoted at 1,467.80 won (mid) on the night of the 21st.

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

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

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

John Williams, President of the Federal Reserve Bank of New York, stated on the 21st (local time) 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, Bank of Japan Policy Board member Kazuyuki Mas told a local media outlet that a rate hike decision 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. Second, regarding the neutral rate, while many countries are above it, Japan’s policy rate is still below the neutral rate. I strongly believe this needs to be changed quickly.”

At the close, the U.S. Dollar Index edged down to 100.154.

The dollar-yen 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.

jykim2@yna.co.kr

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