The won-dollar exchange rate against the U.S. dollar closed weekly trading at 1,345.6 won at 3:30 p.m. on the 8th. It was up 5.1 won (0.38%) from the prior trading day's weekly close. Following the previous day, it stayed in the 1,340-won range for two consecutive trading days.
The rate began trading at 1,344.4 won at 6 a.m., and stood at 1,343 won at 9 a.m. It then fell to as low as 1,336.3 won around 10:59 a.m., but turned higher and rose to 1,345.7 won around 3:29 p.m., just before the end of weekly trading.
An expansion in dollar buying is cited as the reason behind the higher rate. As the rate fell quickly, demand grew to buy dollars in advance at lower prices. In particular, the buying by importers who need to remit payment in the middle of this month has likely increased recently. If more people want to buy dollars in the Seoul foreign exchange market, the won can weaken and the rate can rise.
The National Pension Service halting currency hedging also became a factor affecting the rate. When the National Pension Service hedges, it has the effect of supplying dollars to the foreign exchange market. Conversely, if it stops hedging and buys dollars directly, the rate can fall.
However, it is hard to see the rate as having shifted into an uptrend. This is because the dominant view is that dollar selling by major corporations earning massive dollars on strong semiconductor exports will continue.