On the 17th, the won-dollar exchange rate opened in the 1,470-won range, up more than 2 won from the previous day.

That day in the Seoul foreign exchange market, the won-dollar rate opened at 1,474.5 won, up 2.5 won from the previous trading day's after-hours close as of 3:30 p.m. It was 1.5 won higher than the 2 a.m. closing price.

On the afternoon of the 16th, the KOSPI closing price is displayed on the dealing room board at the Hana Bank headquarters in Jung-gu, Seoul, as the index falls below the 4,000 mark for the first time in 10 trading days amid selling by foreigners and institutions. /Courtesy of News1

The exchange rate is in a wait-and-see mode ahead of the Bank of Japan (BOJ) policy rate decision set for the 19th. The market expects the BOJ to raise the policy rate at this meeting to 0.75% from the current 0.50%. If the BOJ raises the policy rate, the interest earned from holding yen assets increases, pushing up the value of the yen. In that case, the won, which tends to move in tandem with the yen, is also likely to strengthen.

In the domestic stock market, a stronger selling trend by foreign investors is fueling the rise in the exchange rate. As of 9:17 a.m. that day, foreigners were net sellers of 190.3 billion won in stocks on the Korea Exchange. When foreigners sell Korean stocks, demand to convert won into dollars increases, acting as an upward factor for the exchange rate.

Min Kyung-won of Woori Bank said, "Today's exchange rate is expected to stay in the 1,470-won range," adding, "Although the foreign net-selling stance in the domestic stock market is likely to continue today, the rate's upside will be limited as moves tied to a stronger yen emerge."

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