The won-dollar exchange rate opened at 1,549.8 won on the 1st. It rose 0.4 won from the previous transaction day. It is the highest level since Mar. 10, 2009 (1,554 won), during the global financial crisis.
There is an outlook that the won-dollar exchange rate will not exceed 1,500 won on this day. As investor sentiment for risk assets like stocks recovers, demand for the safe-haven dollar could decline. The Standard & Poor's (S&P) 500 and the Nasdaq composite rose 15% and 21%, respectively, in the second quarter this year. It is the highest quarterly gain since the second quarter of 2020.
Whether foreign investors sell domestic stocks also appears likely to affect the exchange rate. If foreign investors sell domestic stocks and exchange the proceeds into dollars, dollar demand could expand and the won-dollar exchange rate could rise. Foreign investors were net sellers of 3.6 trillion won on the previous transaction day. In particular, on the 29th they dumped a record 7.7557 trillion won.
The weak yen is also a burden. The yen and the won tend to move together. The yen-dollar exchange rate climbed to as high as 162.3 yen intraday the previous day. It is the highest level in 39 years and 6 months, since Dec. 1986, right after the Plaza Accord.