On the 14th, the won closed weekly trading at 1,477.5 won per U.S. dollar, up 3.8 won, marking a 10th straight session of gains. It was the highest in 13 sessions since Dec. 23 last year (1,483.6 won).
In the Seoul foreign exchange market that day, the won-dollar rate opened at 1,477.2 won, up 3.5 won from the previous day's weekly trading close (as of 3:30 p.m.). It then widened its gains, topping 1,478 won and approaching the 1,480-won level.
As a result, most of the decline driven by verbal intervention by foreign exchange authorities and the National Pension Service's strategic currency hedging at the end of last year has been reversed.
The current rise in the won-dollar rate is analyzed as being influenced by the weak yen. That is because the won is moving in tandem with the yen.
The yen has weakened as the possibility of dissolving Japan's House of Representatives has been raised, heightening caution over fiscal expansion.
In the Tokyo foreign exchange market that day, the yen-dollar rate traded in the 159-yen-per-dollar range intraday. At one point it rose to as high as 159.45 yen, the strongest level in about a year and a half since July 2024. Accordingly, the cross rate for the won-yen also rose 1.15 won from the previous day to 928.33 won per 100 yen.
Amid the weak yen trend, the dollar also strengthened. The U.S. Dollar Index (DXY), which measures the dollar against the currencies of six major economies, rose 0.03% from the previous day to 99.178. When the Dollar Index is below 100, it means the dollar is weaker against major currencies; when it is above 100, it is stronger.