[Evening Wrap] Dollar-Won Narrows Gains on Lower-than-Expected U.S. CPI... Ends in the 1,416 Won Range

# Dollar-Won Exchange Rate Dips to 1,416.30 as U.S. CPI Falls Short of Forecasts (New York = Yonhap News) Choi Jin-woo, Yonhap Infomax Correspondent – The dollar-to-won exchange rate concluded the overnight session with a slight decrease, closing at 1,416.30 after paring earlier gains. The U.S. Consumer Price Index (CPI) for April came in softer than anticipated, putting downward pressure on the greenback against the Korean won. As of 2 a.m. on May 14 (Korea Standard Time), the dollar-won exchange rate settled at 1,416.30 won, a gain of 13.90 won compared to the prior close in Seoul's foreign exchange market. Against the weekly session close at 1,416.00 won in day trading (9 a.m. to 3:30 p.m.), it slightly increased by 0.30 won. The rate initially began the New York session around the 1,424 won level. However, after the U.S. April CPI data was released, the exchange rate started to decline. According to the U.S. Department of Labor, the CPI for April increased by 0.2% month-over-month and 2.3% year-over-year, marking the smallest annual rise since February 2021. Both figures fell short of market forecasts. The U.S. Dollar Index (DXY), which measures the greenback’s value against six major currencies, dipped to near the 101 range. Consequently, the dollar-won exchange rate dropped below the 1,420 won mark. Bill Adams, Chief Economist at Comerica Bank in Dallas, described the U.S. CPI data as "good news," predicting that "most consumers and businesses will be able to manage inflation by 2025." As of 3:32 a.m., the dollar-yen exchange rate was at 147.585 yen, while the euro-dollar rate traded at 1.11772 dollars. The offshore dollar-yuan rate stood at 7.1966 yuan. Additionally, the yen-won cross-currency rate was at 959.35 won per 100 yen, and the yuan-won rate was 196.54 won. During the session, the dollar-won exchange rate hit an intra-day high of 1,428.80 won and a low of 1,408.00 won, with a trading range of 20.80 won. Total spot transaction volumes in overnight trading amounted to $16.463 billion, aggregating figures from Seoul foreign exchange brokerage firms and the Korea Money Brokerage. jwchoi@yna.co.kr