The won-dollar exchange rate against the U.S. dollar closed at 1,539.1 won on the 23rd. It rose 2.1 won from the previous trading day.
Right after opening at 1,539.4 won, the won-dollar exchange rate climbed to 1,542 won at 9:52 a.m. It was the first time in 15 days since on the 8th that the intraday won-dollar rate topped 1,540 won. It then moved around the 1,530-won level before the market closed. As a result, based on the closing price, the won-dollar exchange rate has stayed above 1,500 won for 26 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 did not calm down despite the decline in global oil prices. The won is heavily affected by oil prices, yet it weakened. This is seen as due to net selling of domestic stocks by foreign investors. When foreigners sell domestic stocks and convert the proceeds into dollars, dollar demand expands and the won-dollar rate tends to rise. Foreigners recorded net sales of 5.7917 trillion won in the KOSPI market on the day.
The dollar's strength is also weighing on the won-dollar exchange rate. When the United States raises its benchmark interest rate and tightens liquidity, most currency, including the won, tends to weaken. The market expects that the Middle East war will push up U.S. inflation and lead to rate hikes.
The limited rise in the won-dollar exchange rate is interpreted as export corporations selling their dollars into the market. When dollars are supplied to the market, the won appreciates and the won-dollar rate can fall.