The won-dollar exchange rate against the U.S. dollar closed at 1,527 won on the 19th, down 0.1 won from the previous trading day. Based on the stock market close, the won-dollar exchange rate has stayed above 1,500 won for 24 straight trading days from the 15th of last month through the day. It is the second-longest stretch after the foreign exchange crisis (49 consecutive trading days).
The won-dollar exchange rate opened at 1,537.4 won and moved near 1,540 won for most of the day before falling sharply in the last hour to close. The recent uptrend is seen as due to dollar strength.
The U.S. Federal Reserve (Fed) signaled it could raise the benchmark rate within the year. The dot plot showing Fed Commissioners' year-end rate projections indicates that 9 of the 18 Commissioners, or half, expect rate hikes. Three foresee a 0.25-percentage-point increase, five see a 0.5-point increase, and one projects a 0.75-point increase.
Foreign investors are again selling domestic stocks. When foreigners sell stocks and convert the proceeds into dollars, dollar demand expands and the won-dollar exchange rate tends to rise. Foreign investors posted a net sale of 983 billion won in the stock market on the day. The Korea Composite Stock Price Index (KOSPI) topped 9,300 for the first time but fell back to finish trading at 9,052.42.