The won-dollar exchange rate rose to the mid-1370 won range on expectations of progress in U.S.-China trade talks.
On the 11th, the weekly close for the won-dollar exchange rate in the Seoul foreign exchange market (as of 3:30 p.m.) was recorded at 1,375.0 won, a rise of 10.7 won from the previous transaction day. This marks the first time in five transaction days since the 2nd (1,373.10 won) that the weekly transaction close has been in the 1,370 won range.
On this day, the exchange rate started at 1,365.0 won, up 0.7 won. It initially fell to 1,362.2 won in early trading but then rebounded, surpassing 1,370 won at 10:55 a.m. Later, it increased its upward momentum, rising to the mid-1370 won range just before closing.
The rise in the exchange rate is due to the strengthening of the dollar following news of progress in U.S.-China negotiations. The two countries agreed on a framework to implement the agreements from the first round of talks in Geneva, Switzerland, last month during the second high-level trade talks held over two days in London, England.
According to foreign media reports, Howard Lutnick, the U.S. Secretary of Commerce, said after the trade talks with China on the 10th (local time) that "this framework agreement will help resolve China's restrictions on rare earth exports."
The dollar index (DXY), which shows the value of the dollar against the currencies of six major countries, is on the rise. According to Investing.com, as of 4:23 p.m., the dollar index was recorded at 99.19, up slightly (0.09%) from the previous day.
However, the upward movement of the exchange rate was limited by the strong buying of domestic stocks by foreigners. On this day, foreigners made a net purchase of about 166 billion won worth of stocks in the securities market. Consequently, the Korea Composite Stock Price Index (KOSPI) closed at 2,907.04, up 35.19 points (1.23%) from the previous day.
As of 3:30 p.m., the won-yen fiscal exchange rate was recorded at 946.77 won per 100 yen, an increase of 2.81 won from the previous day's 3:30 p.m. standard (943.96 won). The dollar-yen exchange rate rose by 0.47% to 145.21 yen.