The won-dollar exchange rate is 1,488.3 won as of 9 a.m. on the 20th. That is up 9.8 won (0.66%) from the previous trading day's weekly transaction closing price.
The exchange rate finished the weekly transaction at 1,478.5 won on the 17th. It was the lowest level in about two months since May 11 (1,472.4 won). Compared with the end of last month, it fell 70.9 won, the largest drop in 3 years and 8 months since November 2022.
SK hynix listed American depositary receipts (ADR) on the U.S. Nasdaq and secured $26.5 billion (about 40 trillion won) in dollars, which is cited as the reason for the decline. the Bank of Korea's monetary policy committee on the 16th raised the benchmark rate to 2.75% from the previous 2.5% per year, which also supported the won's strength.
Analysts say the exchange rate will stay around 1,480 won today on a weaker dollar. That is because expectations have grown that the United States may not raise its benchmark rate. Both U.S. consumer and producer prices came in below forecasts. If the United States does not raise rates, the dollar tends to weaken.
With the recent drop in the exchange rate, demand for currency exchange among Korean retail investors trading U.S. stocks (individual investors who invest overseas) is expected to pick up. Min Kyung-won of Woori Bank said, "The increase in the net buying of U.S. stocks, with an average of $90 million in net purchases per day, is also a factor supporting the lower bound of the exchange rate."