The USD/KRW exchange rate remained flat in the New York foreign exchange market in the early hours of January 3, closing at around 1445 won. Influenced by the release of global economic indicators and the movements of major currencies, the exchange rate failed to establish a clear direction and fluctuated repeatedly within a limited range.
The USD/KRW exchange rate closed at 1444.70 won that day, up 5.70 won from the Seoul foreign exchange market closing price of 1438.90 won, and also up 2.90 won from the weekly closing price of 1441.80 won. After the New York market opened, the US dollar strengthened against major currencies, and the exchange rate rose to 1447.40 won at one point.
The recent currency appreciation was influenced by weak economic indicators in Europe. The Eurozone Manufacturing Purchasing Managers' Index (PMI) for December, released by S&P Global and Commerzbank, came in at 48.8. This figure was below the benchmark of 50, which distinguishes between expansion and contraction, and also below market expectations of 49.2, marking a nine-month low. This weakened the euro, relatively pushing up the value of the dollar.
However, the yen subsequently strengthened, and the USD/KRW exchange rate gave back some of its gains, fluctuating slightly around 1444-1445 KRW. With little room for significant exchange rate volatility, the market generally remained cautious. Joseph Darriere, managing partner at Tickmill Asset Management, stated, "Given the release of key US economic indicators next week, it's too early to judge the direction of the dollar or interest rate trends," and expects the market to maintain a cautious stance.
The total spot trading volume on that day reached US$9.163 billion through Seoul-based foreign exchange brokers and Korean money brokers. The USD/KRW exchange rate fluctuated between a low of 1439.00 KRW and a high of 1447.40 KRW, ultimately settling at around 8.40 KRW. In addition, regarding major currency exchange rates, the USD/JPY exchange rate was 156.740 JPY, the EUR/USD exchange rate was 1.17358 USD, and the offshore USD/CNY exchange rate was 6.9677 yuan.
The current foreign exchange market is likely to remain cautious due to the busy schedule of US economic indicators, including price and employment data, released since the beginning of the year. This is particularly true given that these indicators may influence the Federal Reserve's interest rate policy, and exchange rates are expected to gradually develop their directional trends accordingly.
