The won-dollar exchange rate against the U.S. dollar closed at 1,517.2 won on the 22nd. It rose 11.1 won from the previous transaction day. It is the record high since on the 2nd of last month (1,519.7 won).
The won-dollar exchange rate opened at 1,504.7 won, down 1.4 won, but reversed higher and at one point surged to 1,519.4 won. On a closing basis, the won-dollar exchange rate has stayed above 1,500 won for six consecutive transaction days since on the 15th.
The rise in the won-dollar exchange rate is seen as due to foreigners' net selling of domestic stocks. When foreigners sell domestic stocks and exchange the proceeds into dollars, dollar demand increases and the won-dollar exchange rate rises.
The KOSPI index finished trading at 7,847.71, up 0.41% from the previous transaction day. However, foreigners were net sellers of 1.9229 trillion won. It has been 12 consecutive transaction days of net selling since on the 7th. As net selling shrank to 219.6 billion won the previous day, a shift to net buying was expected, but the scale widened again. Net selling from on the 1st to April totaled $46.01 billion (about 69.33 trillion won).
The Bank of Korea and the Ministry of Finance and Economy engaged in verbal intervention just before the close of won-dollar exchange rate transactions to ease market volatility. The foreign exchange authorities said, "We are watching with caution as the exchange rate movement appears excessive relative to fundamentals," and added, "We will act decisively if necessary."