On the 16th, the won opened at 1,468 won against the U.S. dollar.
In the Seoul foreign exchange market that day, the dollar-won rate opened at 1,468 won, down 3 won from the previous session's weekly transaction closing price (as of 3:30 p.m.). It is the first time in three trading days that the rate started in the 1,460-won range, since on the 11th (1,464.5 won).
The previous day, the rate rose as foreign selling of domestic stocks expanded. When foreigners sell Korean stocks, demand to convert won into dollars increases, acting as an upward factor for the rate. In fact, the previous day foreigners were net sellers of 43.3 billion won worth of stocks on the main bourse. As a result, the Korea Composite Stock Price Index (KOSPI) closed at 4,090.59, down 76.57 points (1.84%) from the previous day.
However, the rate turned lower that day, influenced by the stronger yen, which moves closely with the won. Expectations have spread that the Bank of Japan (BOJ) will raise its benchmark rate by 0.25 percentage point from the current 0.5% at the monetary policy meeting on the 19th. If the benchmark rate is raised to 0.75%, it would be the highest level in about 30 years since September 1995.
According to Investing.com, as of 9:20 a.m. that day, the dollar-yen rate stood at 154.86 yen. It is the first time since on the 8th that the dollar-yen rate has come down into the 154-yen range. The dollar is weakening on the back of the stronger yen. The U.S. Dollar Index (DXY), which measures the dollar's value against six major currencies, was 98.25 as of 9:26 a.m., down 0.07% from the previous day and 0.98% from a week earlier.
Still, experts say the rate's decline could be limited if net foreign selling in the domestic stock market continues. Min Kyung-won, a researcher at Woori Bank, said, "New York stocks opened higher overnight but quickly turned lower as controversy over the profitability of the artificial intelligence (AI) industry continued," adding, "Deteriorating investor sentiment from the United States is likely to be reflected in the domestic market, leading to continued net foreign outflows, and thereby increasing upward pressure on the rate."