Stronger Dollar... Won-Dollar Exchange Rate Rises to 1460 Won in Three Days [Hankyung Foreign Exchange Market Watch]

The strong trend of the US dollar is clearly evident, leading to a rise in the won-dollar exchange rate (a decline in the value of the won). However, the rise was somewhat limited due to net buying by foreigners in the domestic stock market.

On the 9th, the won-dollar exchange rate in the Seoul foreign exchange market (as of 3:30 PM) ended the weekly trading at 1460.50 won, up 5.50 won from the previous day. The exchange rate had dropped to the 1450 won level for the first time in two weeks on the 7th, recording 1453.50 won, and maintained this until the previous day (1455 won), but rose back to the 1460 won level in three days.

The exchange rate started at 1458.60 won, up 3.60 won from the previous day, and moved around the late 1450 won to early 1460 won range.

The dollar index, which indicates the value of the dollar against the currencies of six major countries, fell slightly in the morning but rose to the 109.05 level in the afternoon, putting pressure on the won. News that the Trump administration could declare an economic emergency based on the International Emergency Economic Powers Act (IEEPA) of 1977 to justify imposing universal tariffs fueled the dollar's strength.

However, the rise was somewhat limited due to the net buying trend of foreigners in the domestic stock market. On this day, foreign investors net bought stocks worth 745.8 billion won in the KOSPI market. Caution regarding the National Pension Service's currency hedging is also analyzed to have reduced the rise.

As of 3:30 PM, the won-yen cross rate was traded at 923.52 won, up 3.04 won from the previous day's same time standard price (920.48 won). The yen-dollar exchange rate showed 158.13 yen, up 0.05%.

Reporter Kang Jin-kyu josep@hankyung.com