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Risk asset preferences boost US stocks, USD-KRW exchange rate closes at 1,447 won
Source: TokenPost Original Title: Risk Asset Preference Leads to USD-KRW Exchange Rate Closing at 1,447 Won…Influence of US Stock Market Rally Original Link: The risk asset appetite driven by the rise in the US stock market caused demand for the US dollar to decrease, with the USD-KRW exchange rate closing at 1,447 won. Weak European economic indicators and strong US tech stocks led to a mixed trend.
According to data from the early morning of the 7th Korea time, the USD-KRW exchange rate rose 3.30 won from the previous Seoul foreign exchange market close of 1,443.80 won to 1,447.10 won. In the early hours of the New York market opening, poor European economic data weakened the euro, keeping the dollar strong, and the USD-KRW exchange rate temporarily rose to 1,449.30 won, hitting the intraday high.
Subsequently, US stocks rose, prompting investors to shift funds from safe assets to risk assets such as stocks, leading to a decline in dollar demand. Notably, the Philadelphia Semiconductor Index, composed of leading US semiconductor companies, surged 2.84% intraday, with technology stocks leading the rally. As a result, the exchange rate slightly retreated, falling to around 1,447.00 won at one point.
The geopolitical variables that could influence the foreign exchange market on that day (such as the Venezuela situation) actually had limited impact. Forex experts pointed out that more than 48 hours had passed since the US took military action, yet the exchange rate market showed little sign of it. Early Monday, the dollar was briefly viewed as a safe asset, but this influence dissipated quickly.
On that day, the USD-KRW exchange rate in the forex market reached a high of 1,449.60 won and a low of 1,442.80 won, with a daily fluctuation of 6.80 won. The total spot forex trading volume, including overnight trading, reached $14.533 billion, reflecting active market trading.
Future exchange rate trends will be influenced by US stock market performance, the release of major global economic indicators, especially US interest rate policies and the speed of European economic recovery. If risk asset preference continues, the won may remain strong for a period; but if market uncertainty re-emerges, the exchange rate could rise again.