DXY & Forex

Seo Eun-jong, Head of Global Markets at BNP Paribas Seoul Branch, stated on the 29th that foreign investor interest in the Korean won and won-denominated assets has reached its highest level since he began trading in 2002. In an interview, Seo assessed the government's won internationalization

The Bank of Korea stated in late July that inflation is expected to exceed its target in the second half of 2026, signaling that it remains necessary to maintain a tightening policy stance.

According to BNP Paribas Seoul branch head Seo Eun-jong in an interview with Yonhapinfomax today (July 29), financial markets are excessively pricing in interest rate increases from the Bank of Korea. Seo stated that short-term interest rate swap (IRS) markets are factoring in four to five rate

According to Jin10 Futures, as of 08:45 on July 29, the CFETS-NEX people's yuan funding sentiment index reported 58 points, up 7 points from 16:00 on July 28. The index readings by institution type were: large banks 58 (up 8 points), mid-size banks 60 (up 7 points), and non-bank institutions 56 (up

The USD-KRW exchange rate posted its steepest monthly decline in 44 months through the previous day, falling 5.61% this month, according to the Bank of Korea Economic Statistics System on July 29. The rate dropped from 1,549.40 won at the end of last month to 1,462.50 won, driven by improved

According to Yonhapinfomax, the Korean won strengthened against the US dollar on July 29, with USD/KRW falling to 1,462.50 from an intraday high of 1,472.10. SK Hynix sold over $2 billion worth of dollars and month-end currency settlements by exporters provided significant selling pressure on the do

According to CoinDesk, analysts expect that any dovish signal from the Federal Reserve at Wednesday's FOMC meeting could benefit Bitcoin. CME FedWatch data shows a 70% probability the Fed will maintain current rates and a 30% chance of a 25 basis point rate hike. Block Scholes analyst Thahbib

According to Huatai Macroeconomic Research released on July 29, the probability of a Federal Reserve rate hike in July is above 50%, higher than current market pricing of around 40%. Under the base case scenario, the probability of a rate hike before September is near 100%. The research notes that F

Seoul forex market dealers say currency forecasts have become meaningless recently as extreme volatility driven by war and supply-demand factors overrides traditional fundamentals. USD-KRW fell over 100 won in one month, and FX swap points showed abnormal spikes followed by sharp reversals within a

According to overseas brokers, the dollar-won 1-month non-deliverable forward (NDF) plunged to 1,452.20 on July 29, down 10.10 won from Seoul's previous close of 1,462.50. The decline reflects broader dollar weakness driven by a weaker-than-expected U.S. consumer confidence index and easing

According to Jin10 Futures, on Tuesday, July 28, LME copper fell amid a stronger U.S. dollar and rising expectations for Federal Reserve interest rate decisions. Market participants are monitoring the Fed's upcoming policy announcement, with futures markets pricing in a 62%

South Korean government bond futures rose in overnight trading on the 29th as international oil prices fell for the third consecutive day. The 3-year bond futures closed 2 ticks higher at 103.02, while the 10-year bond futures gained 9 ticks to finish at 105.64. The gains came amid a sharp decline i

South Korea's Seoul Foreign Exchange Market will replace its current Market Average Rate (MAR) methodology with a Time Weighted Average Price (TWAP) system for calculating the USD-KRW base exchange rate from January 1, 2027. The

On Tuesday (July 28), the U.S. dollar retreated from a month-high, with the Dollar Index (DXY) declining 0.1% to 101.42. Oil prices fell for a second consecutive day, easing inflation concerns as the U.S. and Iran maintained a ceasefire that began over the weekend. Market focus now turns to the

According to CME data, federal funds futures open interest surged to a record 967,136 contracts on Monday, ahead of the Federal Reserve's rate decision on Wednesday. The previous record was set in October 2024, when market expectations around the Fed decision were similarly divided. Data showed open

UK households showed reduced inflation concerns in July according to the Citi/YouGov survey released on July 28. One-year-ahead inflation expectations fell to 3.4% from 3.8% in June, while five-year expectations declined to 3.7% from 3.9%. The cooling trend arrives days before the Bank of England's

According to the Citi/YouGov survey released on July 28, British households' one-year-ahead inflation expectations fell to 3.4% from 3.8% in June. Long-term expectations, measured over a five-year horizon,