Dollar-Won Rises Slightly on U.S. Economic Concerns and 'Risk Aversion,' Closes at 1,455.50 Won

# Dollar-Won Exchange Rate Rises Amid U.S. Economic Concerns (New York = Yonhap News) Correspondent Choi Jin-woo, Yonhap Infomax - The dollar-won exchange rate saw a modest rise in overnight trading due to risk aversion driven by concerns about the U.S. economy, closing at around 1,455 won. On the 11th at 2 a.m. (Korean time), the dollar-won exchange rate finished trading at 1,455.50 won, up by 8.70 won compared to the previous session's closing price in the Seoul foreign exchange market. This represents an increase of 3.20 won from the day's closing price of 1,452.30 won during regular trading hours (9 a.m. to 3:30 p.m.). The dollar-won exchange rate hovered around 1,455 won as it entered the New York market. The rate was influenced by a preference for safe-haven assets, which saw the dollar and bonds strengthen in the New York financial markets while stocks weakened. Analysts suggest that statements from U.S. President Donald Trump, which do not rule out the possibility of a recession, have affected investor sentiment. In an interview aired on Fox News on the 9th, President Trump stated, "I don't like to predict things like that," in response to a question about whether he expected a recession this year. He added, "There's a transition period. What we're doing is a big task of bringing wealth back to America, and this takes a little time." Prior to this, U.S. Treasury Secretary Scott Bassant remarked in a CNBC interview on the 7th, "The markets and the economy are addicted to government spending," adding that "there will be a detox period." On the same day, Kevin Hassett, Chairman of the White House National Economic Council (NEC), also commented in a CNBC interview, saying, "I'm very optimistic about the economy but also mindful of a potential GDP decline in the first quarter," while noting that "this will be a very, very temporary phenomenon." Ross Mayfield, an investment strategist at Baird, expressed concerns, stating, "The Trump administration may accept a recession to achieve broader goals." Consequently, the three major indices on the New York Stock Exchange plummeted, with the tech-heavy Nasdaq index dropping more than 4% at one point during the session. The Dollar Index (DXY), which measures the dollar's value against six major currencies, rose approximately 0.2 points to 103.9 as it entered the New York session. Around 1:12 a.m., the dollar-won exchange rate reached an intraday high of 1,457.80 won. As of 2:32 a.m., the dollar-yen exchange rate stood at 147.155 yen, while the euro-dollar exchange rate was at 1.08360 dollars. The offshore dollar-yuan (CNH) exchange rate was trading at 7.2622 yuan. The yen-won benchmark exchange rate was recorded at 986.88 won per 100 yen, and the yuan-won exchange rate was at 200.00 won. The total spot trading volume, combining transactions from Seoul Foreign Exchange Brokerage and Korea Money Brokerage, amounted to 13.144 billion dollars by the end of the overnight session. jwchoi@yna.co.kr