The won-dollar exchange rate against the U.S. dollar finished transaction at 1,450.1 won on the 11th, down 9 won from the previous day. With this, the won-dollar exchange rate closed lower for the third straight day.
On the day, foreign investors made net purchases of more than 850 billion won in domestic stocks on the stock market. When foreign investors buy domestic stocks, it means demand for the won increases. That is a factor that strengthens the won, in other words, pushes the won-dollar exchange rate lower. Backed by foreigners' net buying, the Korea Composite Stock Price Index (KOSPI) rose 1% (52.8 points) from the previous day. The KOSPI ended transaction at 5,354.49 on the day.
In addition, a stronger yuan spurred gains in Asian currency values against the U.S. dollar. On the day, the People's Bank of China (PBOC) set the yuan-dollar reference rate at 6.9438 yuan, down 0.002 yuan (0.03%) from the previous session. The yuan's strength lifted the value of the Korean won as well. A rise in the won's value means a decline in the won-dollar exchange rate.