The won-dollar exchange rate against the U.S. dollar was 1,343 won at 9 a.m. on the 8th. It fell 2.5 won (0.18%) from the previous transaction day's closing price. Afterward, the rate fell to 1,340 won around 9:40 a.m., but reversed higher to 1,341 won around 9:56 a.m.
There is an outlook that the rate will edge down on the day. That is because the scale of dollar selling by major corporations could grow on the back of robust semiconductor exports. There is also a view that order backlogs for shipbuilders and heavy industry companies will add to this. If dollar selling increases in the Seoul foreign exchange market, the won could strengthen and the rate could fall.
The strength of the Japanese yen is also expected to affect the rate. The won and the yen tend to move in the same direction. When the yen strengthens, it likely means the won will also appreciate. The yen-dollar rate was 153.7 yen, down 0.45% from the previous day's level of 154.4 yen.
However, because the rate fell quickly, demand to buy dollars at lower prices could increase. If so, even if the rate falls, the decline would be limited.
There are also claims that the National Pension Service's suspension of currency hedging is having an impact. Min Kyung-won, a Woori Bank researcher, said, "The suspension of hedging is interpreted as a move reflecting the assessment that the downward pressure on the won has eased," adding, "As a result, it could slow the pace of the rate's decline."