Won-Dollar Exchange Rate Opens Slightly Lower in the 1,380-Won Range

The won-dollar exchange rate edged slightly lower on declines in international oil prices and US Treasury yields, trading in the 1,380-won range. As of 9:22 a.m. on the 18th, the exchange rate against the dollar in the Seoul foreign exchange market stood at 1,380.3 won.

US Treasury yields influenced the exchange rate's decline. Yields fell as some uncertainty surrounding monetary policy eased following the US Federal Reserve's benchmark rate hike. The yield on the 10-year US Treasury note fell 5.7 basis points (1bp = 0.01 percentage point) to 4.946%, while the 2-year yield, which is sensitive to monetary policy, dropped 3.8 basis points to 4.688%.

International oil prices also fell. As concerns over disruptions to Saudi Arabia's crude supply partially subsided, Brent crude futures for November delivery to India closed 0.95% lower at $104.82 per barrel. West Texas Intermediate (WTI) crude futures for October delivery to India also fell 0.51% to $101.91 per barrel.

Meanwhile, the dollar index, which reflects the dollar's value against six major currencies, fell 0.04% to 100.215. Ahn So-eun, a researcher at KB Securities, analyzed, "As the surge in oil prices eased, the 10-year US Treasury yield fell below 5%, and the stabilization of interest rate and oil price trends partially eased uncertainty in financial markets."