The won-dollar exchange rate against the U.S. dollar closed at 1,541.8 won on the 24th, up 2.7 won from the previous trading day. It is the first time since Mar. 9, 2009 (1,549 won), during the global financial crisis, that the won-dollar exchange rate has exceeded 1,540 won on a weekly closing basis.
The won-dollar exchange rate opened at 1,534.9 won that day, then expanded its gains from 30 minutes before the close and finished trading above 1,540 won. As a result, on a stock closing basis it has stayed above 1,500 won for 27 trading days from the 15th of last month through that day. It is the second-longest stretch after the foreign exchange crisis (49 consecutive trading days).
The rise in the won-dollar exchange rate is seen as stemming from dollar strength despite U.S.-Iran war talks. Following a record plunge in Korea's Korea Composite Stock Price Index (KOSPI) the previous day, the New York stock market also tumbled, souring investor sentiment toward risk assets.
In particular, net selling of Korean stocks by foreign investors appears to have played a role. When foreigners sell Korean stocks and convert the proceeds into dollars, dollar demand increases and the won-dollar exchange rate tends to rise.
Foreign investors were estimated to have been net sellers of 4.6533 trillion won that day. The cumulative net selling of Korean stocks by foreigners is approaching $80 billion. At the day's won-dollar exchange rate, that amounts to more than 123 trillion won.