The won-dollar exchange rate closed weekly trading at 1,386.5 won at 3:30 p.m. on the 21st. That was down 6.1 won (0.43%) from the prior session's weekly close. On the same basis, it was the lowest level in about 11 months since Sept. 17 last year (1,380.1 won). It stayed in the 1,300-won range for the third straight trading day, following on the 19th.
The rate opened the day at 1,395 won at 6 a.m., then fell to 1,390.9 won at 9 a.m. The decline continued, sliding to 1,380.3 won around 11:23 a.m. In the afternoon, it ended the weekly transaction with a slight rise and little volatility.
The recent drop in the rate is seen as stemming from major exporters selling the dollars they hold into the market. When the supply of dollars increases in the Seoul foreign exchange market, the won strengthens and the rate falls. At the end of the month, corporations are said to集中 sell dollars to secure funds for payments and other needs.
In particular, news that Samsung Electronics could announce a shareholder return program worth around 100 trillion won, the largest ever in Korea, also appears likely to affect the rate. It means more dollars could be sold than now to fund dividends.
Still, the dollar's continued strength remains a burden. Talks between the United States and Iran have not materialized, keeping the Strait of Hormuz closed so far. As a result, on the 20th (local time), Brent, the global benchmark, rose 2.36% to $93.78 a barrel from the previous session.
U.S. Treasury yields also remain elevated. Yields fell after the Treasury decided to expand long-term Government Bonds buybacks, but they reversed higher in just one day. The Standard & Poor's (S&P) 500 fell 0.87%, and the Nasdaq Composite dropped 1%, showing weakness.