The won-dollar exchange rate against the U.S. dollar finished weekly transactions at 1,462.5 won at 3:30 p.m. on the 28th. That was down 6 won (0.4%) from the previous trading day's close. The won-dollar rate has held in the 1,460-won range for four straight sessions (weekly close) since the 23rd.
The rate opened the day's transactions at 1,465 won at 6 a.m. and rose to 1,467.6 won at 9 a.m. It then began to fall, dropping to as low as 1,461.4 won around 3:07 p.m.
The day's decline in the rate is seen as due to exporters' dollar selling. When exporters convert dollars they hold into won, dollars are supplied to the Seoul foreign exchange market, pushing the rate down. Min Kyung-won, a Woori Bank researcher, said, "With strong exports continuing recently, if month-end exporter (dollar) supply flows in at a large scale, it serves as a positive factor for the won."
In the foreign exchange market, sentiment has formed that dollar supply will expand following SK hynix's listing of American depository receipts (ADR). SK hynix is said to be converting part of the $26.5 billion raised through the ADR listing into won.
However, the unresolved U.S.-Iran tensions are weighing on the rate. If the war situation persists, demand for the safe-haven dollar can increase and push the rate up. U.S. President Donald Trump said in a media interview, "We are in very in-depth negotiations with Iran," but added, "If we fail to achieve results, we will return to very strong military action."
Net selling of domestic stocks by foreign investors also affects the rate. When foreigners sell domestic stocks and convert the proceeds into dollars, the rate tends to rise. Foreigners were net sellers of 4.9664 trillion won in the main stock market that day. Net selling over the past three sessions totals about 8.2 trillion won.