The won-dollar exchange rate closed at 1,425.8 won on the 26th. It fell 3.6 won from the previous day.
The won-dollar exchange rate opened at 1,426.3 won on the day, down 3.1 won from the previous day. It fell to as low as 1,418.9 won at 10:44 a.m., then briefly turned higher in the afternoon. At 1:18 p.m., it stood at 1,431.6 won, about 2 won higher than the previous day. However, it turned lower ahead of the close of weekly transactions (9 a.m.–3:30 p.m.). It ultimately finished lower than the opening price. This is also the lowest level since on the 28th of last month (1,422.5 won).
The won-dollar exchange rate is seen to have fallen as risk asset investment sentiment spread. When demand for investment in risk assets increases in the market, the value of the won, which is not a key currency, tends to rise.
Meanwhile, U.S. stocks in New York rose across the board overnight. On the 25th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 49,482.15, up 307.65 points (0.63%) from the previous session. The Standard & Poor's (S&P) 500 rose 56.06 points (0.81%) to 6,946.13, and the Nasdaq composite added 288.40 points (1.26%) to finish at 23,152.08.
Meanwhile, the Bank of Korea's monetary policy committee (Monetary Policy Board) kept the base rate unchanged at 2.5% on the day. At a press briefing held right after the Monetary Policy Board meeting, Rhee Chang-yong, the Bank of Korea (BOK) governor, pointed to exchange-rate volatility as one of the reasons for the hold. Rhee said, "Although it has decreased significantly recently, (the exchange rate's) volatility remains high."
He added, "While residents' overseas securities investment by the National Pension Service has decreased, investments by other residents are increasing at a pace similar to October–November last year, leaving supply-demand pressures in the foreign exchange market intact."