The won-dollar exchange rate against the U.S. dollar closed weekly trading at 1,432.5 won at 3:30 p.m. on the 4th, up 2.7 won (0.18%) from the previous session's weekly closing price.
The rate fell from 1,431.8 won at 9 a.m. to the 1,420-won range earlier in the day, but reversed higher to end the transaction. On a weekly closing basis, after marking the 1,420-won range for two consecutive sessions on the 31st, it inched up.
This is analyzed as importers buying dollars to purchase raw materials and other goods overseas. As the rate fell quickly and sharply recently, more moved to buy dollars while they were cheap. The increase in individual investors seeking to invest in U.S. stocks and bonds also affected the rate. When dollar demand expands in the foreign exchange market, the rate rises.
The gain was limited because the United States and Iran reentered talks, halting a full-scale war, and the dollar weakened. As risk asset investment sentiment recovered, the Dow on the 3rd (local time) hit a record high. The Standard & Poor's (S&P) 500 and the Nasdaq also rose 1.48% and 2.13%, respectively, from the previous transaction.