The won-dollar exchange rate against the U.S. dollar finished weekly transactions at 1,416.1 won at 3:30 p.m. on the 7th. That was down 7.7 won (0.54%) from the previous trading day's weekly transaction close. On the same basis, it was the lowest level in about 10 months since Oct. 2 (1,400 won).
The rate opened transactions at 1,424 won at 6 a.m. that day and rose to 1,425.7 won around 9:04 a.m. But it soon turned lower and stood at 1,415.9 won just before 3:30 p.m. It was the first time the rate finished weekly transactions in the 1,410-won range since Oct. 20 last year (1,419.2 won). On the base rate for exchange, the rate has fallen for seven straight trading days since the 30th of last month.
The won strengthened despite concerns that negotiations related to the Strait of Hormuz could face difficulties. Export corporations such as SK hynix are selling the dollars they hold and buying won. The more dollars are supplied to the Seoul foreign exchange market, the lower the rate goes.
SK hynix is said to have been selling, in stages since the 15th of last month, $26.5 billion raised through the listing of American depository receipts (ADR). As expectations grow that the rate will fall going forward, other export corporations are also analyzed to be selling dollars.
In particular, the foreign exchange authorities' emphasis that they would respond to the rate in coordination with Japanese authorities also contributed to the stronger-won tone. Cho Yong-gu, a researcher at Shinyoung Securities, said, "If dollars related to SK hynix are continuing to come in," then "it seems there are position changes among export companies."