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According to the Seoul Foreign Exchange Brokerage on the 5th, the won-dollar exchange rate is trading at 1130.40 won, up 5.30 won from the previous trading day as of 9:04 am on the day. On this day, the exchange rate opened at 1132.00 won and has narrowed its movement from the beginning of 1130 won.
Fed Chairman Jerome Powell said at the Jobs Summit video conference held by the Wall Street Journal (WSJ) on the 4th (local time) that he was “concerned about the market disorder that could threaten the Fed’s goals.” I didn’t say anything about it. The market, which wanted to get hints on asset purchase duration adjustments and yield curve control (YCC) policies, turned to disappointment.
The three major New York indexes fell by 1-2%, and the US 10-year Treasury bond rate rose to the 1.5% level. The dollar index is also 91.62 at 6 p.m. on the 4th (local time), up 0.74% from the previous trading day.
The KOSPI index also fell around 1% on that day, barely keeping the 3000 line. The KOSDAQ index is also falling around 1%. Foreigners are selling nearly 100 billion won, recording net selling for three consecutive trading days. Nasdaq futures and Standard & Poor’s (S&P) index futures declined 1%, then reduced the decline to 0.1-0.3%. In Korea, the 10-year Treasury bond rate rose to 2% during the intraday. This is the first time since March 2019 that the 10-year interest rate has hit the 2% range.
Ryu Eun-kyung, a researcher at Busan Bank, said, “When the Fed Chairman Powell did not comment on the policy to curb the interest rate increase expected in the market, the US Treasury bond rate rose, and the New York Stock Market plunged and the dollar was strong. Supported and expected to fluctuate around the 1130 won range.