On the 22nd, the won started in the 1,476-won range against the U.S. dollar.
In the Seoul foreign exchange market that day, the won-dollar exchange rate opened at 1,476.6 won, up 0.3 won from the previous trading day's weekly transaction closing price (as of 3:30 p.m., 1,476.3 won). It fell 1.4 won from the close at 2 a.m. on the 20th (1,478 won).
The won is weakening as the global yen slump and strong dollar trend coincide. Last week, when the Bank of Japan (BOJ) raised its benchmark rate to 0.75% from 0.5% and did not mention the possibility of additional rate hikes, the yen weakened, and the dollar, which had been subdued by yen strength, strengthened again. The won has high synchronicity with the yen, so when the yen weakens, the won-dollar exchange rate tends to rise.
According to Investing.com, the dollar index (DXY), which shows the value of the dollar against the currencies of six major countries, was at 98.70 as of 8:43 a.m. that day. That is 0.1% higher than a day earlier and 0.31% higher than a week earlier. In contrast, the dollar-yen exchange rate was 157.68 yen, showing weakness as it broke above 157 yen intraday for the first time since the 25th of last month.
However, with foreign investors turning to net buying in the domestic stock market, the rise in the exchange rate was limited. According to the Korea Exchange (KRX), as of 9:10 a.m. that day, foreigners were net buyers of 86.8 billion won in stocks on the Korea Composite Stock Price Index (KOSPI) market. As a result, the KOSPI opened at 4,096.26, up 75.71 points from the previous trading day.
Min Kyung-won, a Woori Bank researcher, said, "Today the exchange rate is expected to stay in the high 1,470-won range due to pressure from the globally strong dollar." Min added, "However, foreign investors' net buying of stocks and exporters' 'nego' (converting dollars received as settlement into won), among other high-level selling pressures, are factors preventing the exchange rate from rising further."