The won-dollar exchange rate against the U.S. dollar finished weekly transactions at 1,424.5 won at 3:30 p.m. on the 5th. That was down 8 won (0.55%) from the previous trading day's weekly closing price.
The rate hit 1,430.5 won at 9 a.m. that day, then immediately fell into the 1,420-won range. It then ended weekly transactions with little volatility. As a result, on a weekly closing basis, the rate returned to the 1,420-won range in just one day.
The decline is attributed to foreign investors' net buying of 1.4463 trillion won on the Korea Composite Stock Price Index (KOSPI). When foreigners sell the dollars they hold to buy domestic stocks, the won can strengthen and the rate can fall. Foreign investors were net sellers of more than $70 billion only in April–May this year, but since July the net selling has been shrinking.
With U.S. stocks also gaining, some said risk asset investment sentiment has recovered. This is because armed clashes between the United States and Iran have stopped and an agreement to open the Strait of Hormuz is underway. U.S. President Donald Trump said on the 4th (local time), "The Strait of Hormuz will open soon." In New York trading the previous day, the Dow and the Standard & Poor's (S&P) 500 both hit record highs.