On the 26th, the won fell nearly 7 won against the U.S. dollar, closing in the 1,460-won range for the first time in four sessions.
In the Seoul foreign exchange market, the won-dollar rate closed the weekly session at 1,465.6 won, down 6.8 won from the previous session's weekly transaction closing price (3:30 p.m.) of 1,472.4 won. It was the first weekly transaction close in the 1,460-won range in four sessions since on the 20th (1,467.9 won). The decline in the rate was also the biggest since on the 14th (-10.7 won).
The rate opened 7.4 won lower at 1,465 won and widened its loss, falling to as low as 1,457 won intraday. A rate in the 1,450-won range was the first since on the 17th. After the results of a media roundtable by Koo Yun-cheol, Deputy Prime Minister and Minister of the Ministry of Economy and Finance, were reported at 11:30 a.m., it turned higher and even jumped to 1,467.7 won at 1:30 p.m., but then inched down to finish the session at 1,465 won.
The rate kept falling from the previous day's close as the dollar weakened overnight on hopes for an end to the war between Russia and Ukraine. U.S. President Donald Trump said in a White House speech, "I think we are getting very close to an agreement to end the war."
After the remarks, the dollar index (DXY), which shows the dollar's value against the currencies of six major countries, trended lower. According to Investing.com, as of 4:12 p.m. that day, DXY was down 0.14% from the previous day at 99.67. If this figure falls below 100, it means the dollar is weaker against major currencies.
Market caution over foreign exchange authorities' intervention also added to the rate's decline. At the media roundtable, Deputy Prime Minister Koo said, "We are closely monitoring speculative transactions and one-way herd behavior and will respond decisively if volatility is excessive," adding, "We will consider all possible policies to stabilize the foreign exchange market."
Im Hwan-yeol, a researcher at Woori Bank, said, "The rate did rebound because no concrete countermeasures were disclosed at the press conference, but the fact that the foreign exchange authorities continue to make remarks revealing caution about the (level of the rate) was enough to signal (the possibility of actual intervention) to the market."
Foreign investors turning to net buying in the domestic stock market also affected the rate's decline. In the main board that day, foreigners recorded net buying of 516 billion won. It was the first time in four sessions that foreigners turned to net buying. Boosted by foreign buying, the Korea Composite Stock Price Index (KOSPI) finished trading at 3,960.87, up 103.04 points (2.67%) from the previous day.