Korean Won Weakens Against US Dollar Amid Surging Bond Yields

The South Korean won weakened against the US dollar on September 15, due to rising bond yields in the United States. The yield on the 10-year U.S. Treasury hit its highest level since 2007, fueled by concerns over inflation and global oil supply.

The intensifying military conflict between the US and Iran in the Middle East has driven up oil prices, sparking worries about global oil supply. This has led to expectations that the US Federal Reserve may raise its key rate at a policy meeting this week, further affecting exchange rates.

Foreigners sold a net 1.5 trillion won (US$1.1 billion) worth of local stocks during the latest trading session, with the benchmark Korea Composite Stock Price Index falling 0.85 percent to close at 6,627.26. The won was quoted at 1,359.4 won per dollar at 3:30 p.m., down 12.1 won from the previous stock trading session.