USD/KRW Trades at 1,485.70 Won Amid Dollar Supply and BOK Rate Hike Expectations

The USD/KRW exchange rate traded at 1,485.70 won as of 09:17 on July 16th, up 1.00 won from the previous Seoul close of 1,484.70 won. The rate fell 1.30 won from the New York close of 1,487.00 won. The exchange rate remained pressured by dollar supply dominance and expectations for a Bank of Korea (BOK) Monetary Policy Committee rate hike. Dollar inflows from SK Hynix's American Depositary Receipt (ADR) listing have been steadily converting into won, capping the rate's upside, while Hanwha Ocean's forward FX sales also limited gains. The anticipated BOK rate increase—the first in three years and six months—strengthened the won against major Asian currencies.

USD/KRW Declines to Mid-1,480s on Dollar Selling Pressure

The USD/KRW rate retreated to the early-to-mid 1,480 won range, reflecting dollar selling dominance in supply-demand conditions. The exchange rate opened at 1,485.70 won at 09:17, down from the overnight New York close of 1,487.00 won. Dollar funds that flowed in following SK Hynix's ADR listing have continued converting into won, exerting downward pressure on the rate. Hanwha Ocean's ongoing forward FX sales added to the factors constraining the exchange rate's ceiling.

BOK Rate Hike Expectations Support Won Strength

The BOK Monetary Policy Committee's anticipated rate increase—the first in three years and six months—served as a won-strengthening factor. The JPY/KRW and CNY/KRW cross rates both declined in tandem, showing won strength against major Asian currencies. The JPY/KRW cross rate fell 0.25% to 916.74 won per 100 yen, while the CNY/KRW rate dropped 0.26% to 219.62 won. The offshore CNH rate stood at 6.7653 yuan, down 0.05% from the previous session.

US June PPI Falls 0.3%, Easing Inflation Concerns

US inflation concerns moderated after the June Producer Price Index (PPI) fell 0.3% month-over-month, according to the US Department of Labor. The figure undershot market forecasts of flat growth. The global dollar weakened in response, with the dollar index declining 0.05% to 100.438 at the same timestamp. The USD/JPY rate fell 0.02% to 162.074 yen, while the EUR/USD rate rose 0.09% to 1.14730 dollars.

FAQ

What was the USD/KRW exchange rate on July 16th?
The USD/KRW exchange rate traded at 1,485.70 won as of 09:17 on July 16th, up 1.00 won from the previous Seoul close of 1,484.70 won but down 1.30 won from the New York close of 1,487.00 won.

Why did the USD/KRW rate decline on July 16th?
The rate declined due to dollar supply dominance driven by SK Hynix ADR inflows converting to won and Hanwha Ocean's forward FX sales. Expectations for the Bank of Korea's first rate hike in three years and six months also strengthened the won.

How did US inflation data affect the global dollar on July 16th?
The US June PPI fell 0.3% month-over-month, below market forecasts, easing inflation concerns. The dollar index declined 0.05% to 100.438 in response.