The won-dollar exchange rate against the U.S. dollar opened at 1,549.8 won on the 1st. It rose 0.4 won from the previous transaction day.
There is analysis that the won-dollar exchange rate could rise from the previous transaction day. The previous day, the won-dollar exchange rate ended weekly transaction at 1,554.9 won. It then finished the overnight session at 1,551.2 won, a slight decline.
The won-dollar exchange rate's upward trend is attributed to overall dollar strength. If the United States raises its benchmark rate following Europe and Japan, other currency, including the won, tend to weaken. The market expects the United States could tighten money by raising rates due to the fallout from the Middle East war. Federal Reserve (Fed) Chair Kevin Warsh said on the 1st (local time) at the European Central Bank forum in Sintra, Portugal, "Inflation is too high."
Net selling of domestic stocks by foreign investors also appears likely to affect the exchange rate. When foreign investors sell domestic stocks and exchange them for dollars, dollar demand expands and the won-dollar exchange rate can rise. Foreign investors recorded net selling of 1.7 trillion won the previous day. The net selling scale over the past three months is over 75 trillion won. In particular, on the 29th of last month they dumped 7.75 trillion won, the largest amount on record.
Yen weakness is also weighing on the won-dollar exchange rate. That is because when the yen's value falls, the won tends to fall as well. As of 9 a.m. on the day, the yen-dollar exchange rate against the U.S. dollar (yen-dollar rate) was 162.54 yen, down 0.001 yen from the previous transaction day. The yuan (CNH) rate against the dollar was 6.79 yuan, unchanged from the previous transaction day.