The won-dollar exchange rate fell slightly as the U.S. dollar weakened and foreigners were net sellers of Korean stocks.
On the 6th in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,447.7 won, down 1.7 won from the previous session's weekly transaction closing price (as of 3:30 p.m.). The exchange rate closing price has been in the 1,440-won range for two days.
As expectations grew that the Donald Trump administration could lose lawsuits over reciprocal tariffs, the dollar's strength eased somewhat. The dollar index (DXY), which measures the dollar's value against the currencies of six major countries, was down 0.11% from the previous day at around 100.025.
The U.S. Supreme Court on the 5th (local time) began hearings to determine the legality of the broad tariffs President Trump imposed on countries around the world, including Korea. Lower courts had previously ruled that Trump's move to use emergency powers to impose tariffs worldwide was illegal.
However, the exchange rate's decline was limited as foreigners dumped more than 1 trillion won of Korean stocks. In the stock market, foreigners were net sellers of about 1.6951 trillion won, marking a fourth straight session of selling. The Korea Composite Stock Price Index (KOSPI) closed at 4,026.45, up 0.55% (22.03 points) from the previous session.
Wi Jae-hyeon, an economist at NH Futures, said, "The dollar's value fell after the Supreme Court hearing on Trump's reciprocal tariff," adding, "Regardless of political leanings, the justices have generally expressed skepticism toward Trump's arguments, keeping pressure on the dollar to weaken."