On the 19th, the won closed at 1,473.7 won per U.S. dollar, up 0.1 won. The euro's decline on trade tensions between the United States and the European Union (EU) over Greenland weighed on it.
The rate opened at 1,474 won, up 0.4 won from the previous session, but reversed lower early in the session, falling to 1,470.9 won around 9:53 a.m. It then rebounded to 1,475.7 won at 12:16 p.m., but fell again after 2 p.m. to finish trading in the 1,473-won range.
The rate has stayed elevated in the 1,470-won range as U.S.-Europe tensions over Greenland intensified. Over the weekend, U.S. President Donald Trump said he would impose a 10% U.S.-bound tariff starting next month and 25% from June on eight European countries opposing the U.S. intention to annex Greenland. The eight countries subject to the tariff are Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, which have dispatched troops to Greenland or expressed plans to do so.
The euro slumped on the fallout. According to Investing.com, the euro-dollar (dollars per euro) fell to as low as $1.1579 around 7:30 a.m., the lowest since November last year. It later rebounded to the $1.16 level, but it remains the lowest since mid-December last year.
By contrast, the U.S. Dollar Index (DXY), which tracks the dollar against six major currencies, stood at 99.17 as of 3:48 p.m., nearing 100. It rose as high as 99.31 intraday. A reading above 100 indicates the dollar is strong against major currencies, while below 100 indicates weakness.
However, the won's upside was limited as foreign investors bought domestic stocks in volume. In the Korea Composite Stock Price Index (KOSPI), foreigners posted a net purchase of 551.4 billion won in stocks. On the back of this, the KOSPI closed at 4,904.66, up 63.92 points (1.32%) from the previous session. It topped 4,900 points at the close for the first time ever.
Im Hwan-yeol, a Woori Bank researcher, said, "As the United States demanded ownership of Greenland and signaled tariff hikes on European countries that oppose it, the euro weakened early in the session while the dollar strengthened," adding, "However, the euro rebounded in the afternoon and foreign buying of domestic stocks intensified, limiting the upside in the exchange rate."