On the 29th, the won started at 1,440 won against the U.S. dollar.
In the Seoul foreign exchange market that day, the won-dollar exchange rate opened at 1,440 won, up 0.3 won from the previous transaction day (on the 26th) weekly session close (as of 3:30 p.m.). It was down 2.2 won from the 2 a.m. close on the 27th (1,442.2 won).
The exchange rate, which had surged into the 1,480 won range early last week, settled into the 1,440 won range after strong verbal intervention by the foreign exchange authorities. In a message sent to reporters on the 24th, the authorities said, "You will soon see the government's strong resolve and policy execution capability for stabilizing the exchange rate." As a result, the rate, which had opened at 1,484.9 won at the time, finished the weekly session at 1,449.8 won, down 33.8 won from the previous day, and caution persisted on the 26th, with the rate closing 9.5 won lower at 1,440.3 won.
News on the 26th that the National Pension Service had resumed strategic currency hedging also helped push the rate lower. The National Pension Service sells dollar forwards by up to 10% of overseas asset when the won-dollar rate rises more than expected (a contract to sell dollars at a pre-determined exchange rate). This increases the supply of dollars in the market, exerting downward pressure on the rate.
An expert projected that on the 29th the rate would also move in the low 1,440 won range as caution over authorities' intervention persists. Min Kyung-won, a Woori Bank researcher, said, "Caution over market intervention stemming from the authorities' will to stabilize the exchange rate is being continuously maintained," adding, "As the view spreads that the rate has reached a peak, dollar-selling by exporters will emerge."