US Dollar Strengthens as Global Bond Yields Spike

The US dollar strengthened against the Korean won last week, as bond yields jumped across major countries including the United States. The won-dollar exchange rate stood at 1,361.4 won on October 2nd, up 3 won from the previous day's closing price of 1,358.4 won.

The global sell-off in government bonds pushed up long-term bond yields in key economies. US Treasury yields rose to 5.34% intraday, its highest since April 2002, while UK 30-year bond yields reached 6.02%, a level not seen since 1998. France's 10-year bond yields also surged to 4.964%, the highest since 2002.

Experts point to several factors contributing to the rise in government bond yields: the ongoing war between the US and Iran, increasing energy prices and inflation pressure, big tech corporations' expanded investment in artificial intelligence, and governments' growing fiscal expenditure.