On the 27th, the won-dollar exchange rate opened nearly 3 won higher from the previous day, approaching the 1,470-won level.
That day in the Seoul foreign exchange market, the won-dollar rate started at 1,468.5 won, up 2.9 won from the prior trading day's weekly transaction closing price at 3:30 p.m. After falling nearly 7 won the previous day, the won-dollar rate rebounded, recouping part of the decline.
In the market, the view is that disappointment with the government's foreign exchange market stabilization measures the previous day is pushing the won-dollar rate higher. The previous day, Koo Yun-cheol Deputy Prime Minister and Minister of Economy and Finance held a press briefing on the foreign exchange market at the Government Complex Sejong and said, "To balance the National Pension Service's revenue and foreign exchange market stability, we have begun discussions to build a new framework for the pension." The press briefing was hastily arranged a day earlier, but there were no specific measures.
In particular, when asked about strategic FX hedging by the National Pension Service, Deputy Prime Minister Koo avoided a direct answer, saying, "It is a matter decided by the Fund Management Committee chaired by the Minister of Health and Welfare." Strategic FX hedging refers to selling up to 10% of the National Pension Service's overseas asset at a specific price when the exchange rate rises above a certain level, which, if executed, would act as downward pressure on the won-dollar rate. Park Sang-hyun, a researcher at Hi Investment & Securities, said, "It seems yesterday's (foreign exchange market stabilization) measures themselves fell short of (investors') expectations."
That day, the Bank of Korea's monetary policy committee was scheduled to set the base rate, followed by a press conference by Rhee Chang-yong, the BOK governor. Depending on the committee's base rate decision and Rhee's remarks at the press conference, the won-dollar rate could move significantly. Wi Jae-hyun, a researcher at NH Futures, noted, "At today's (Bank of Korea) monetary policy committee press conference, the exchange rate issue is expected to be discussed actively," adding, "There is room for market volatility to expand again."