The won-dollar exchange rate against the U.S. dollar opened at 1,543 won on the 25th, up 1.2 won from the previous transaction day. It is the first time the won-dollar exchange rate has started trading above 1,540 won since Mar. 10, 2009 (1,554 won), during the global financial crisis.
On this day, the won-dollar exchange rate is expected to stay around 1,540 won, as the dollar remains strong. If the Federal Reserve (Fed) raises its benchmark interest rate and tightens liquidity, risk appetite could weaken. Separate from the rise in stock prices led by artificial intelligence (AI)-related shares, demand for safe assets such as the dollar could increase.
Selling of domestic stocks by foreign investors is also expected to have an impact. When foreigners sell domestic stocks and convert the proceeds into dollars, dollar demand expands and the won-dollar exchange rate tends to rise. Foreigners recorded net selling of 4.6533 trillion won the previous day. Cumulative net selling this year stands at $80 billion, exceeding 123 trillion won.