The won-dollar exchange rate opened at 1,458.8 won on the 11th. It fell 0.3 won from the previous day.
The decline in the won-dollar exchange rate is seen as being influenced by a stronger Chinese yuan. As the yuan strengthened against the U.S. dollar, the value of the won, another Asian currency, also rose.
On the previous day, the People's Bank of China (PBOC) set the yuan's reference rate against the U.S. dollar at 6.9458 yuan per $1. Compared with the previous fixing (6.9523 yuan per $1), it raised the value of the yuan.
The PBOC has been wary of sharp exchange-rate swings. Recently, however, it appears not to be tightly curbing the yuan's gradual strengthening. The market sees the PBOC's decision as a signal that China will tolerate a decline in the dollar-yuan exchange rate.
Min Kyung-won of Woori Bank said, "Asian currencies such as the won and the Singapore dollar are highly likely to be linked to the dollar-yuan exchange rate," adding, "Ahead of the Lunar New Year holiday, as exporters' negotiation (dollar selling) supply is absorbed at the highs, it will act as a factor pushing down the intraday won-dollar exchange rate."