Dollar-Won Exchange Rate Falls to 1,488.80 Overnight as U.S. PPI Disappoints

According to Yonhapinfomax, the dollar-won exchange rate fell 4.20 won to 1,488.80 won in overnight trading on July 16. The decline was triggered by weaker-than-expected U.S. producer prices, which dimmed expectations for Federal Reserve rate increases.

The U.S. Labor Department reported June Producer Price Index fell 0.3% month-over-month on a seasonally adjusted basis, below market expectations of flat growth. Core PPI, excluding volatile food and energy, rose 0.2%, also below the forecast of 0.4%. The dollar index slipped to 100.7 amid declining Treasury yields.