The won-dollar exchange rate against the U.S. dollar closed weekly trading at 1,493 won at 3:30 p.m. on the 14th. It was down 10.4 won (0.69%) from the previous session's weekly transaction closing price.
Factors behind the day's weaker exchange rate include net buying of domestic stocks by foreign investors and expectations of dollar inflows following SK hynix's American depositary receipt (ADR) listing on Nasdaq.
On the day, foreigners were net buyers of 961.6 billion won in the main stock market. As the KOSPI index fell 8.95% from the previous session the day before, buying emerged. When foreigners exchange dollars for won to purchase domestic stocks, dollars are supplied to the foreign exchange market, which can push the exchange rate lower (appreciating the won). In June alone, when the KOSPI index rose, foreigners dumped $32.37 billion in domestic stocks.
SK hynix's ADR listing also affected the exchange rate. With expectations that SK hynix will place a large amount of dollars on the market in a short period, talk is that anticipation spread across the market that the exchange rate could fall going forward. SK hynix will receive $26.5 billion raised through the ADR listing on the 15th Korea time.
However, a variable is that demand for the safe-haven dollar has increased due to U.S.-Iran military clashes. U.S. President Donald Trump said he would impose a 20% expense on cargo passing through the Strait of Hormuz. As a result, West Texas Intermediate (WTI) the day before settled at $781.4 per barrel, up 9.42% from the previous session.