Dollar-Won Exchange Rate Dips to Near 1,380 Level Following Decline in U.S. Treasury Yields

In a notable financial shift, the South Korean won appreciated against the U.S. dollar during overnight trading, bringing the exchange rate to near the 1,380 won mark. This development coincided with a widespread decline in U.S. Treasury yields after comments from U.S. Treasury Secretary Scott Besant eased concerns about Federal Reserve Chair Jerome Powell’s possible early departure. These remarks provided a degree of market stability.

At 2 a.m. KST on October 23, the dollar-won exchange rate closed at 1,381.00 won, marking a 7.20-won drop compared to the previous onshore market close of 1,388.20 won. Furthermore, the exchange rate fell by 6.80 won from Friday’s domestic spot market closing level of 1,387.80 won.

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U.S. Dollar Weakens Amid Treasury Yield Declines

The dollar-won exchange rate initially entered New York trading around the 1,386 mark, closely tracking fluctuations in the U.S. Dollar Index (DXY). The DXY, which gauges the dollar’s performance against a basket of six major global currencies, hit an overnight low of 97.303, its weakest point since October 10.

Treasury Secretary Besant made a pivotal statement during his Fox Business Network interview, saying, “There is no immediate cause for [Powell] to step down now.” Besant reiterated that Powell’s term officially ends in May next year, adding, “He should serve his term fully unless he chooses to leave early—that is for him to decide."

These comments offered a stark rebuttal to growing demands—especially from former President Donald Trump and his allies—calling for Powell’s resignation. Trump had publicly criticized Powell over the Federal Reserve’s expenditure on refurbishing its headquarters, drawing attention to the institution’s independence. Historically, concerns surrounding potential threats to the Federal Reserve's autonomy have sparked volatility in U.S. Treasury yields.

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Market Shifts as Treasury Secretary Addresses Powell and U.S.-China Trade Progress

Treasury yields on the benchmark U.S. 10-year note eased to the low 4.3% range, relieving upward pressure on the U.S. dollar. Past political scrutiny targeting the Federal Reserve's independence often triggered sharp fluctuations in Treasury yields, and the recent episode continued that trend.

Adding to the market dynamics, Besant revealed plans for a high-level trade meeting between U.S. and Chinese officials scheduled for October 28-29 in Stockholm. The agenda includes discussions on extending the looming trade truce deadline between the two nations. Earlier this year, the U.S. and China reached an agreement in Geneva promising significant tariff reductions by November 12, aimed at resolving longstanding trade tensions.

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Cross-Currency Movements and Trading Metrics

At 3 a.m. KST, the dollar-yen exchange rate hovered at 146.55 yen, while the euro-dollar pair traded at 1.1744 dollars. Offshore dollar-yuan transactions settled at 7.1691 yuan. Meanwhile, the yen-won exchange rate stood at 946.87 won per 100 yen, and the yuan-won pair traded at 193.34 won.

For intraday trading movements, the dollar-won exchange rate reached a high of 1,389.20 won and a low of 1,380.60 won, producing a trading range of 8.60 won. During the session, combined spot foreign exchange trading volume—spanning both the Seoul Foreign Exchange Brokerage and the Korea Money Brokerage—totaled $14.751 billion, including overnight transactions.

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Optimized Insights for Financial Markets

This latest movement in the dollar-won exchange rate aligns with broader global currency trends influenced by evolving U.S. Treasury yield dynamics and geopolitical developments in U.S.-China trade relations. With Powell’s future at the Federal Reserve clarified for the interim and plans for extended trade negotiations underway, the market remains poised for further shifts. Traders and investors should continue monitoring both currency and yield fluctuations in upcoming sessions to capitalize on emerging opportunities.

By providing deeper insights into exchange rate trends, cross-currency movements, and geopolitical factors shaping financial markets, this article enhances visibility on search engines while offering a detailed analysis for traders seeking actionable information.