The won-dollar exchange rate against the U.S. dollar finished weekly trading at 1,418.4 won at 3:30 p.m. on the 10th. That was up 2.3 won (0.16%) from the prior trading day's weekly close.
The rate opened at 1,413 won at 6 a.m., then fell to as low as 1,408.8 won around 9:03 a.m. It then climbed, reaching 1,418.8 won around 3:28 p.m., before edging down slightly to end the transaction.
A weekly close in the 1,410-won range marked the second straight trading day, following on the 7th. On the same basis, it was the lowest level in about 10 months since Oct. 2 (1,400 won).
The recent decline in the exchange rate is seen as stemming from a lowered likelihood that the Federal Reserve (Fed) will raise its benchmark interest rate. If the United States holds rates steady, the dollar can weaken and the rate can fall. In the United States, inflation remains elevated due to the Middle East war, but July nonfarm payroll gains were 23,000, below the forecast of 85,000. Raising rates could slow economic growth and hiring.
Sales of dollars held by exporters, including SK hynix, also affected the rate. When dollar selling increases in scale, the rate tends to fall. A mood has formed in the foreign exchange market that the won will strengthen. That is one reason the rate's rise was limited even though foreign investors posted a net sell of 1.4886 trillion won on the KOSPI.
However, some said the rate's decline could be limited by dollar demand from importers buying raw materials from overseas. As the rate fell quickly in a short period, buying grew among those seeking to purchase dollars in advance while they are cheap. Dollar exchange demand for investing in U.S. stocks is also emerging as a variable.