On the 10th, the won-dollar exchange rate closed sharply higher in the 1,420-won range.
On this day in the Seoul foreign exchange market, the weekly transaction closing price of the won against the dollar (as of 3:30 p.m.) was tallied at 1,421.0, up 21.0 won from the previous transaction day. Based on the closing price, it is the highest level since Apr. 30 (1,421.0 won).
The exchange rate opened at 1,423.0 won, up 23.0 won from the previous transaction day, then rose to as high as 1,424.5 won. It then repeatedly fluctuated around the 1,420-won mark. This reflects the rate that at one point during the holiday period shot up to the mid-1,420-won range in offshore transactions.
A prolonged negotiation over a $350 billion investment in the United States is believed to have driven the sharp rise in the exchange rate. Industry and Trade Minister Kim Jung-kwan visited the United States during the holiday and held talks with Commerce Minister Howard Lutnick, but they reportedly failed to reach an agreement on issues such as how to raise the investment funds.
A stronger dollar also had an effect. The dollar index (DXY), which measures the dollar's value against the currencies of six major countries, stood around 99.363, higher than the closing price of 97.881 on the 2nd.
Expectations that Liberal Democratic Party leader Takaichi Sanae will become Japan's next prime minister also spurred the rise in the exchange rate as the yen's value fell sharply. In the international financial market, the won generally tends to follow the yen's movement. The yen-dollar exchange rate was 152.69 yen as of the 8th, the highest in seven months since Feb. 13.