On the 4th, the first trading day after the 21st presidential election, the won-dollar exchange rate slightly fell, dropping to the 1,360 won level.
On this day, the weekly closing transaction price of the won against the U.S. dollar in the Seoul foreign exchange market (as of 3:30 p.m.) was 1,369.5 won, down 3.6 won from the previous transaction day.
On this day, the exchange rate started at 1,375.0 won, up 1.9 won from the previous transaction day, and remained steady before markedly falling around 3 p.m. just before the weekly closing transaction. It was the first time since the 27th of last month (1,369.5 won) that the closing price of the exchange rate fell to the 1,360 won range.
The influx of foreign funds into the stock market seems to have pushed the exchange rate down. The Korea Composite Stock Price Index (KOSPI) closed at 2,770.84, up 71.87 points (2.66%) from the previous transaction day. Foreign investors led the upward trend by net purchasing about 1.05 trillion won worth of shares in the stock market.
The inauguration of President Lee Jae-myung also acted as a factor for the strong won, as it resolved domestic political uncertainties. Wi Jae-hyeon, an economist at NH Futures, noted, "Since the resolution of political vacuum issues, which have driven domestic uncertainty since last December, the pressure for the exchange rate to fall has dominated."
The value of the dollar is on a declining trend. The Dollar Index (DXY), which shows the value of the dollar against six major currencies, rose 0.46% from the previous transaction day to 99.253. The Dollar Index has been below 100 for the second consecutive week since the 21st of last month.
As of 3:30 p.m., the fiscal exchange rate for the won-yen was 951.24 won per 100 yen, down 7.46 won from the previous transaction day's rate at 3:30 p.m. The yen-dollar exchange rate was 143.96 yen, up 0.75%.