On the 12th, the won-dollar exchange rate closed in the 1,468 range, up more than 10 won. During intraday trading, the rise accelerated, climbing to 1,470 won before edging down slightly.
In the Seoul foreign exchange market that day, the won-dollar exchange rate ended at 1,468.4 won, up 10.8 won from the weekly transaction closing price on the 9th, the previous trading day, based on 3:30 p.m. By the closing rate, it was the highest since the 23rd of last month (1,483.6 won).
The rate opened at 1,461.3 won, up 3.7 won, and stayed on an upward track throughout. It topped 1,462 won at 10:55 a.m., then broke through 1,464 won at 11:52 a.m. The climb steepened further, surpassing 1,468 won at 1:36 p.m., reaching 1,470 won at 3:01 p.m., then dipping slightly before the close.
Heavy stock selling by foreigners in the domestic stock market fueled the exchange rate's rise. In the Korea Composite Stock Price Index (KOSPI) market that day, foreigners were net sellers of 351.2 billion won in shares. Foreigners have logged net selling for three straight trading days since the 8th (-418.7 billion won). Analysts said the rate rose as foreigners converted won secured from stock sales into dollars.
An improvement in U.S. jobs data that lifted the dollar's value also contributed to the higher exchange rate. According to Investing.com, the U.S. Dollar Index (DXY), which measures the dollar against the currencies of six major countries, stood at 98.9 as of 3:55 p.m. That is up 0.64% from a week earlier and 0.51% from a month earlier.
According to the U.S. Department of Labor, the U.S. unemployment rate in December last year was 4.4%, down from 4.5% the previous month. That slightly undercut the 4.5% forecast compiled by Dow Jones. When employment indicators improve, expectations for Federal Reserve (Fed) rate cuts weaken and the dollar strengthens.
Im Hwan-yeol of Woori Bank said, "With increased dollar demand from foreigners' stock selling and a shortage of dollar supply in the market, the exchange rate rose," adding, "It appears a supply-demand imbalance emerged."