U.S. Treasury Yields Push KRW/USD Back to Mid-1,360s After Chuseok

Up 7.6 Won From the Previous Trading Day

The KRW/USD exchange rate climbed back to the mid-1,360 won range on September 28, the first trading day after the Chuseok holiday. This was due to the impact of higher U.S. Treasury yields during the holiday period.

On the 28th, the real-time won/dollar exchange rate and the KOSPI and KOSDAQ indices are displayed on the electronic board in the dealing room of Hana Bank headquarters in Jung-gu, Seoul. Photo by Yonhap News

On this day, the KRW/USD exchange rate closed weekly trading at 1,365.1 won as of 3:30 p.m. in the Seoul foreign exchange market, up 7.6 won from the previous trading day.

The exchange rate opened at 1,357.0 won and rose to 1,362.5 won around 11:07 a.m. It then fell to the mid-1,350 won range before rebounding around 1:00 p.m., reaching a high of 1,365.5 won.

The increase in the KRW/USD exchange rate appears to reflect the rise in U.S. Treasury yields during the Chuseok holiday. During this period, the yield on the 10-year U.S. Treasury reached 5.22% per annum, the highest level since June 2007. The 30-year yield also surged to 5.501%, the highest since 2004.

The dollar index (DXY), which measures the value of the dollar against six major currencies, stood at 101.169, up 0.02 from the previous trading day, maintaining a high level. Foreign investors also contributed to the rise in the exchange rate by recording a net sale of 3.2295 trillion won in the domestic stock market on this day.

The KRW/JPY cross rate rose by 6.06 won to 865.96 won per 100 yen. The JPY/USD exchange rate fell by 0.51 yen to 157.625 yen.

This content was produced with the assistance of AI translation services.