The won-dollar exchange rate stood at 1,347.3 won as of 3:30 p.m. on the 14th, closing weekly transactions. It rose 1.4 won (0.1%) from the previous trading day's weekly close.
The rate that day matched some market forecasts that it could reach the 1,340-won range. As the rate stayed in the 1,330-won range for two straight days starting on the 10th, buying to pick up dollars at low prices increased. Min Kyung-won of Woori Bank said, "Dollar end-users who shifted to a wait-and-see stance in the mid-to-high 1,300-won range changed their strategy to active buying from the 1,330-won level."
It is also believed that foreign investors' net selling of 3.287 trillion won in the domestic KOSPI market that day affected the rate. When foreigners sell domestic stocks and exchange the proceeds into dollars, the rate can rise.
Analysts say the exchange rate will vary depending on benchmark rate decisions by the U.S. Federal Reserve (Fed) and the Bank of Japan. Depending on how the two set rates, the dollar and yen, which influence the rate, could strengthen or weaken. Min said, "In the global FX market, rate hikes by the Bank of Japan are being priced in more actively than those by the Fed."