The won-dollar exchange rate rose by more than 10 won, influenced by foreign investors' net selling of stocks and a strong dollar.
On the 26th, in the Seoul foreign exchange market, the won-dollar exchange rate was recorded at 1,395.8 won, an increase of 11.1 won compared to the previous trading day's weekly transaction closing price (3:30 p.m.).
The exchange rate showed strength from the beginning of the session. It started at 1,391.0 won, which was 6.3 won higher than the previous day, and the increase expanded in the afternoon.
On this day, foreign selling was prominent in the stock market. Foreign investors net sold 682 billion won worth of stocks in the stock market, and the Korea Composite Stock Price Index (KOSPI) closed down 0.95% at 3,179.36.
The strength of the dollar was also a factor that pushed up the exchange rate. The dollar index, which indicates the dollar's value against six major currencies, recorded a level of 98.377. It fell to 97.654 during the previous trading day but rebounded to 98.499 on this day. This is interpreted as a partial reversal of the weakening trend due to expectations of a U.S. interest rate cut.
A political variable that attracted attention was the Korea-U.S. summit held in Washington, D.C. the previous day, but it did not have a significant impact on the market.
Ahead of the summit, U.S. President Donald Trump stirred controversy by posting a provocative message on social media, stating that it seemed 'purges or revolutions' were taking place in Korea, but the summit concluded without any unexpected developments.
After the meeting with President Lee Jae-myung, President Trump said, 'We decided to maintain the trade agreement we reached last month.'
At the same time, the won-yen exchange rate was 944.67 won per 100 yen, which was an increase of 3.82 won compared to the previous day, while the yen-dollar exchange rate recorded a decline of 0.14 yen at 147.65 yen.