Won Strengthens Against Dollar Amid Exporter-Sold Dollars and Oil Price Drop

The South Korean won strengthened against the US dollar on September 30, despite the dollar's overall strength due to rising tensions in the Middle East. The exchange rate stood at 1,351.4 won per $1 at 9 a.m., down 5.3 won (0.39%) from the previous trading day's weekly close.

This move is attributed to the selling of dollars by South Korea's major export corporations, which tend to increase their dollar sales at quarter-end as in recent days. This increased dollar selling has led to a relative strengthening of the won and a fall in the exchange rate.

However, the rise in US Government Bonds yields remains a factor for a weaker won (higher exchange rate). The 10-year US Government Bonds yield held steady at 5.24%, its highest since June 2007, while the 30-year yield rose intraday to 5.613%, marking its highest in 24 years since June 2000.

The impact of these yields on the won is lessened by the decline in global oil prices following news that Saudi Arabia resumed crude exports via the Red Sea. Brent futures, the global benchmark, fell 2.56% from the previous transaction day to $102.59 per barrel.