For the second consecutive trading day, the won-dollar exchange rate, which had maintained the 1,440 won range, rose again to the 1,450 won range due to the impact of foreign investors' net selling of stocks.
According to the Seoul foreign exchange market on the 10th, the closing price of the won-dollar exchange rate for the week (as of 3:30 p.m.) recorded 1,452.3 won, an increase of 5.5 won from the previous trading day. This is the first time the closing exchange rate has risen to the 1,450 won range since the 5th (1,454.5 won), after three transactions.
The exchange rate started the day up 1.2 won at 1,448 won and expanded its increase, reaching 1,457 won by 12:22 p.m. It then reversed direction and dropped back down to the 1,450 won range.
In the securities market, foreign investors net sold stocks worth 441.1 billion won, which significantly reduced demand for the won. Foreign investors also net sold 26.7 billion won in the KOSDAQ market, further exacerbating the won's weakness.
Externally, the strength of the dollar drove up the exchange rate. According to Investing.com, the dollar index (DXY), which reflects the value of the dollar against six major currencies, recorded 103.87 as of 4:37 p.m. This figure rose from the mid-103 range early in the session.
As the dollar rebounded, Asian currencies also turned weak. The dollar-yen exchange rate, which started in the low 147 yen range, rose to the high 147 yen range, while the dollar-yuan exchange rate, which was in the 7.25 yuan range, increased to the 7.26 yuan range. The won also faced downward pressure, corresponding with the weakness of the yen and yuan.
Min Kyung-won, a researcher at Woori Bank, noted, “Despite the recent sluggish performance of the U.S. stock market, residents' investments in overseas stocks continue steadily. This acts as a factor that encourages the buying of dollars, supporting the lower end of the exchange rate along with payment demands from importers.”