On the 17th, the won-dollar exchange rate closed at 1,479.8 won, up 2.8 won. During the session, the rate topped 1,480 won for the first time in eight months.
In the Seoul foreign exchange market that day, the won-dollar rate opened at 1,474.5 won, down 2.5 won from the prior trading day's weekly transaction closing price (3:30 p.m.).
The rate turned higher intraday and jumped to as high as 1,482.3 won at 11:08 a.m. It was the first time the rate topped 1,480 won since Apr. 9 (1,487.6 won on a high basis).
From 11:36 a.m., the rate's gains narrowed and it fluctuated around the 1,480-won level. It later closed below 1,480 won. The closing price was also the highest in eight months since Apr. 9 (1,484.1 won).
The rise in the rate was driven by foreigners' net selling of domestic stocks. Foreign investors posted net selling of 24.56 billion won on the Korea Composite Stock Price Index (KOSPI) market that day. When foreigners sell Korean stocks, demand to exchange won into dollars increases, pushing the rate higher.
Dollar strength also appears to have fueled the rise. According to Investing.com, the U.S. dollar index, which measures the dollar against six major currencies, rose to 98.46 as of 3:50 p.m. That was up 0.24% from the previous close.
Foreign exchange authorities' measures to stabilize the exchange market are also not exerting much force. The government said on the 15th it had agreed to extend for one year its foreign exchange swap contract with the National Pension Service with an annual limit of $65 billion. Under the foreign exchange swap, the National Pension Service sources dollars needed for overseas investments from the Bank of Korea instead of buying them in the foreign exchange market.