The won-dollar exchange rate rose to 1,361.4 Korean won at 9 a.m. on the 2nd, up 3 won from the previous trading session’s close of 1,358.4 won. The move followed a broad sell-off in global bonds that pushed long-term yields higher across the U.S., U.K. and France. Rising U.S. Treasury yields generally increase the appeal of dollar-denominated assets, putting depreciation pressure on the won and lifting the exchange rate. Reuters reported that the U.S. 10-year Treasury yield reached 5.34% during trading, its highest level since April 2002. The U.K. 30-year bond yield climbed to 6.02%, exceeding 6% for the first time since 1998, while France’s 10-year yield reached 4.964%, the highest since 2002. The market move has been attributed to overlapping pressures including energy-price-driven inflation linked to the prolonged U.S.-Iran war, increased AI investment by Big Tech companies and higher government fiscal spending. Jung Yong-taek, a researcher at IBK Securities, said the interest-rate gap with the U.S. had widened since June and accelerated further from late August. He said the exchange rate could return to the mid-to-late 1,400 Korean won range by year-end or next year depending on external conditions.