The won-dollar exchange rate against the U.S. dollar closed weekly trading at 1,473.4 won at 3:30 p.m. on the 21st. It was down 5 won (0.33%) from the prior trading day's weekly transaction close. Since the 14th, it has stayed in the 1,400-won range for five straight trading days.
The decline in the exchange rate is seen as stemming from continued expectations that a large amount of dollars will be supplied to the Seoul foreign exchange market due to SK hynix's listing of American depository receipts (ADR). SK hynix plans to gradually sell the $26.5 billion raised through the ADR listing into the foreign exchange market.
Foreign investors' net buying of 295 billion won in the stock market that day also appears to have affected the exchange rate. When foreigners convert dollars they hold into won to buy stocks, it becomes a factor pushing the exchange rate down. Foreign investors were net buyers of 222.6 billion won over the past week, turning to net buying for the first time in four weeks.
Although military clashes between the United States and Iran are intensifying, the likelihood of a U.S. benchmark rate hike has diminished. That is because U.S. consumer price inflation came in lower than expected. In the market, there is a view that the Federal Reserve (Fed) is likely to hold rates at the Federal Open Market Committee (FOMC) meeting at the end of this month.