Against the U.S. dollar, the won exchange rate (won-dollar exchange rate) closed weekly trading at 1,478.4 won at 3:30 p.m. on the 20th. That was down 0.1 won from the previous trading day's weekly transaction closing price. It was the lowest level since May 11, when it was 1,472.4 won.
At 9 a.m. that day, the rate was 1,488.3 won, up 9.8 won from the previous trading day. It then continued to fall, dropping to 1,477 won at around 3:29 p.m., before ticking up slightly to finish the transaction. Compared with the 6 a.m. opening price (1,490 won), it was down 11.6 won (0.77%).
The exchange rate has been weakening this month. It fell from 1,554.9 won on the 1st to the 1,470-won range that day. It is seen as due to SK hynix's listing of American depositary receipts (ADR). Expectations have grown that the rate could fall if SK hynix supplies $26.5 billion, raised through its ADR issuance, to the Seoul foreign exchange market.
Net purchases of domestic stocks by foreign investors also appear to have had an impact. When foreigners put up dollars they hold to buy domestic stocks, the exchange rate can fall. That day, foreigners were net buyers of 516.1 billion won in the main board. Over the past week, they were net buyers of 222.6 billion won, turning to buying for the first time in four weeks.
It also appears to have been influenced by growing expectations that the United States may not raise interest rates. By contrast, the Bank of Korea on the 16th raised the benchmark rate to 2.75% from 2.5% annually. The rate gap between Korea and the United States narrowed from 1.25 percentage points to 1 percentage point. If the United States does not raise rates, currencies like the won tend to strengthen against the dollar.