The won-dollar exchange rate against the U.S. dollar closed at 1,525.6 won on the 3rd. It fell 30.2 won from the previous transaction day. The drop was the largest since Apr. 8, when it fell 33.6 won.
The won-dollar exchange rate opened at 1,544.5 won, down 11.3 won from the previous transaction day, and moved around a similar level. But it began to plunge around 3 p.m., just before the close, and finished trading in the 1,520-won range. Among foreign exchange market participants, there was talk that the foreign exchange authorities seemed to have intervened.
Still, the rate itself remains elevated. The won-dollar exchange rate has stayed above 1,500 won for 34 trading days in a row from May 15 to today. It is the longest since the foreign exchange crisis (49 consecutive trading days). If this continues through the end of this month, it will set an all-time record.
Net selling of domestic stocks by foreign investors is also weighing on the rate. Some say foreigners' rebalancing has wrapped up, but the selling continues. When foreigners sell domestic stocks and exchange the proceeds into dollars, the won-dollar exchange rate tends to rise. On the day, foreigners posted net selling of about 2.3 trillion won. Net selling in the first half of the year has exceeded 149 trillion won.