The won-dollar exchange rate closed down at the low 1450 won range. This was due to the dollar's weakness influenced by concerns over a recession in the United States. The foreign net buying of stocks also contributed to the decline in the exchange rate.

According to the Seoul foreign exchange market on the 12th, the closing price of the won-dollar exchange rate for weekly transactions (3:30 p.m.) was recorded at 1451.0 won, down 7.2 won from the previous closing price (1458.2 won). It has closed in the 1450 won range for three consecutive trading days since the 10th (1452.3 won).

The stock market is displayed on the electronic board of the Hana Bank main branch dealing room in Jung-gu, Seoul on the afternoon of the 12th. /Courtesy of News1
The stock market is displayed on the electronic board of the Hana Bank main branch dealing room in Jung-gu, Seoul on the afternoon of the 12th. /Courtesy of News1

The exchange rate started at 1453.0 won, down 5.2 won from the previous closing price. It widened its decline, dropping below 1450 won at 11:13 a.m., but rebounded in the afternoon, rising back to the low 1450 won range.

Concerns over a recession in the United States have stifled dollar strength. On the 9th (local time), President Donald Trump, in an interview with Fox News, responded to a question about whether he expected a recession, saying, "There will be a turning point," while mentioning the possibility of recession. As a result, the New York stock market plummeted, and the dollar weakened.

Last night, the United States and Ukraine agreed to a 30-day ceasefire in the Russia-Ukraine war, and Europe is promoting increased government spending on defense, resulting in a strengthening of the euro. This led to dollar weakness, causing the exchange rate to decline.

According to Investing.com, the dollar index (DXY), which shows the dollar's value against six major currencies, was recorded at 103.65 as of 4:32 p.m. This represents a 3.7% decrease compared to the closing price on the 28th of last month (107.61).

Domestically, foreign investors contributed to the decline in the exchange rate by net buying stocks. Foreigners purchased about 380 billion won in the KOSPI market and about 10 billion won in the KOSDAQ market. Consequently, the KOSPI closed up 37.22 points (1.47%) at 2574.83, while the KOSDAQ rose by 7.99 points (1.11%) to close at 729.49.