The won-dollar exchange rate against the U.S. dollar closed at 1,555.8 won on the 2nd, up 0.9 won from the previous transaction day. The weekly closing level that day was the highest since Mar. 2, 2009 (1,570.3 won), during the global financial crisis.
The won-dollar exchange rate opened at 1,552.3 won that day, held in the 1,550-won range, and finished the transaction. As a result, the won-dollar rate has stayed above 1,500 won for 33 consecutive transaction days from May 15 to that day, the second longest after the foreign exchange crisis (49 consecutive transaction days).
The rise in the won-dollar rate is seen as due to dollar strength. If the United States raises its benchmark interest rate to tame prices pushed up by the Middle East war, other currency including the won weaken. Federal Reserve (Fed) Chair Kevin Warsh said on the 1st (local time) that "prices are too high," but noted inflation concerns had eased.
Net selling of domestic stocks by foreign investors is also pressuring the exchange rate. When foreigners sell domestic stocks and exchange the proceeds for dollars, dollar demand increases and the won-dollar rate rises. Foreigners were net sellers of more than 5 trillion won on the Korea Exchange that day. The day before, they dumped 1.7 trillion won.
The yen-dollar exchange rate against the dollar was 162.2 yen around the same time, a slight decline from the previous closing price (162.5 yen) on the New York foreign exchange market basis. The yuan-dollar rate against the dollar was 6.79 yuan, down 0.01 yuan.