Won-dollar exchange rate close to 1200 mark: DONG-A ILBO

0
The prices of stocks and bonds as well as the Korean won against the dollar fell due to several unfavorable factors in the market. Korea’s benchmark stock price index (KOSPI) plunged nearly 2% to below 3,000 and the won-dollar exchange rate hit 1,190 in 14 months.

Concerns about the possibility of a ‘perfect storm’ hitting the financial market are increasing due to overlapping structural factors that cannot be addressed in the short term, including disruptions in the global supply chain, fears of inflation accelerated by rising commodity prices, and fears of an economic slowdown.

According to the Korea Exchange (KRX) on Wednesday, KOSPI lost 53.86 points, or 1.82%, from the previous day to close at 2,908.31. This is its lowest level of the year, still lower than that of January 4 (2,944.45), the opening day of 2021. After falling below the 3,000 mark for the first time in six The day before, the KOSPI is now on the verge of falling below the 2,900 mark.

The won-dollar exchange rate and bond prices also fell. The won was listed at 1,192.3 to the dollar, up 3.6 won from the previous day, on the Seoul foreign exchange market on Wednesday. This is the first time since August 4 last year that the won has exceeded 1,190 won. The yield on 3-year Korean Treasury bonds rose 0.069 percentage points to close at 1.719%, hitting a new high. The yield on 5-year Treasury bonds also broke the previous record at 2.082%. Experts point out that the country is experiencing a repeating vicious cycle, where the weaker won against the dollar and falling bond prices cause stock prices to drop sharply.

The reason for the continued fall in the prices of stocks and bonds and the value of the won against the dollar is due to the deterioration in investor sentiment caused by multiple unfavorable factors. With disruptions in the global supply chain and rising commodity prices raising fears of inflation, a possible collapse of Chinese group Hengda and a power shortage in China are fueling concerns about a slowing Chinese economy. , leading to increased anxiety among investors.

[email protected] [email protected]


Source link

Leave A Reply

Your email address will not be published.