Dollar-Won falls ahead of 1,500 wonLast night, the dollar-won (REGN) exchange rate

1) Dollar-Won falls ahead of 1,500 won
Last night, the dollar-won (REGN) exchange rate closed at around 1,489 won, down about 4 won from the previous day due to the dollar selling volume that appeared ahead of 1,500 won. The won depreciated about 3 percent against the dollar during the period due to the trillion-won foreign stock market selling offensive that has continued for five trading days. President Lee Jae-myung met with U.S. Treasury Secretary Scott Bessant on the day and proposed a “Korea-U.S. currency swap.” BofA argues that traders are underestimating the risk of a strong dollar given strong U.S. economic indicators and the relative strength of the New York Stock Exchange

2) U.S. producer prices jump 6 percent
The U.S. producer price index (PPI) rose 6.0% year-on-year in April. This is way above market expectations. Core PPI growth excluding food and energy rose 5.2%, the highest in more than three years. Energy costs jumped 7.8%. Service prices also rose 1.2%, the biggest jump in four years. “This suggests that rising energy prices are actually spreading to the core prices of the production stage,” said High Frequency Economics

3) Collins Favors Freeze For Time
Boston Fed President Susan Collins said the key interest rate should remain in place for the time being, citing high inflation. “Over five years of inflation above the target has led to less patience to simply turn the supply shock over to a “transitory factor,” he noted. “It’s not the most likely scenario, but we can’t rule out the possibility of further tightening to bring inflation back to the 2% level in a timely manner,” Collins said

4) U.S.-China summit expected
U.S. Treasury Secretary Scott Bessant and China’s Deputy Prime Minister Hu Jiepeng prepare for a summit between the two countries. Xinhua News Agency reported that “the two sides exchanged frank, in-depth and constructive opinions on economic and trade issues and expansion of substantial cooperation.” The U.S. is pressuring China to cooperate to reopen the Strait of Hormuz and reduce Iranian oil imports. Reuters reported that the two countries are considering a potential negotiating framework, including easing tariffs on about $30 billion worth of items each, to the extent that they do not threaten national security

5) U.S. Households’ Price Worry
Last year, before the outbreak of the war in Iran, a majority of Americans already cited rising prices as their biggest economic concern, and increased anxiety over the job market. According to the “2025 Household Economy and Decision-Making Survey” released by the Fed, 91% of respondents are concerned about rising prices. Voters’ complaints about high prices have affected President Donald Trump’s tenure and are expected to act as a major variable again in this year’s midterm elections
(자료: Bloomberg News)