The won-dollar exchange rate closed at 1,460.3 won on the 9th. It fell 9.2 won from the previous day. It was the first drop in four days for the won-dollar exchange rate.
The won-dollar exchange rate opened at 1,465.5 won on the day, down 4 won from the prior transaction day. Within 10 minutes of the open, it fell to as low as 1,455 won. However, the won-dollar exchange rate pared losses ahead of the close of weekly transactions (9 a.m.–3:30 p.m.). In the end, it finished in the 1,460 won range, down by nearly 10 won from the previous day.
The decline in the won-dollar exchange rate is seen as stemming from revived investor sentiment toward risk assets. On the 6th, the prior transaction day, the Dow Jones Industrial Average at the New York Stock Exchange (NYSE) in the United States topped 50,000 points for the first time ever.
The Dow Jones Industrial Average rose 2.47% on the day. The Standard & Poor's (S&P) 500 index and the tech-heavy Nasdaq composite also climbed 1.97% and 2.18%, respectively. When investor appetite for risk assets strengthens like this, demand tends to increase for the won, which is not a key currency.
On the 9th, the Korea Composite Stock Price Index (KOSPI) closed at 5,298.04, up 4.1% from the prior transaction day. In the stock market that day, foreigners were net buyers of 449.1 billion won. When foreigners are net buyers of domestic stocks, demand for the won tends to rise and the won tends to appreciate.
Min Kyung-won, a researcher at Woori Bank, said, "As foreign capital has flowed into the domestic stock market on a net basis, the won, a risk currency, strengthened," and added, "Hedging demand from heavy industry companies is expected to make a major contribution to stabilizing the won's value through next week."