U.S. Treasury yields surge… Won-dollar exchange rate closed by 15.7 won

Input 2021.02.26 16:05 | Revision 2021.02.26 16:06

Won-dollar exchange rate of 1123.5 won closed… Best in 13 trading days

The won-dollar exchange rate ended up 15.7 won on the 26th. As the interest rate on 10-year US Treasury bonds surges, hedging sentiment is amplifying in the global financial market.

On this day, the won-dollar exchange rate in the Seoul foreign exchange market ended at 1123.5 won, up 15.7 won from the previous trading day. This is the highest level in 13 trading days since the 5th (1123.7 won) based on the closing price. The exchange rate, which started at 1120.5 won, increased by 12.7 won that day, increased its peak to 1124.4 won at 1:26 pm.

As interest rates on 10-year US Treasury bonds surged, the New York stock market plummeted, and hedging sentiment spread in the global financial market. Last night, the 10-year Treasury bond rate rose to 1.6% during the intraday and ended at the 1.53% range.

Federal Reserve Chairman Jerome Powell dismissed inflation concerns at a parliamentary hearing, but the market is still feeling a sense of crisis that the Fed could start tapering early (reducing asset purchases) because of inflation.

The domestic stock market fell sharply due to the quarterly rebalancing of Morgan Stanley Capital International (MSCI). The KOSPI index closed at 3012.95, down 2.80% (86.79 points) from the previous trading day. Foreigners sold 2.8 trillion won, and institutions sold 1.34 trillion won. Individuals net bought 3,7684 trillion won alone, but failed to defend the index.

Baek Seok-hyun, a researcher at Shinhan Bank, said, “Last night, the surge in US Treasury yields had no choice but to have an aftermath in the exchange rate.”