The won-dollar rate rises for the sixth consecutive day due to foreign investors’ net selling in the domestic stock market.
The won-dollar exchange rate jumped to its highest level in seven and a half months on Nov. 24, rising for the sixth consecutive trading day due to the impact of foreign investors’ net selling in the domestic stock market.
The closing price (as of 3:30 PM) of the won against the U.S. dollar in the Seoul foreign exchange market was 1,477.1 won, up 1.5 won from the previous trading day.
The day’s closing price was the highest in seven and a half months since April 9 (1,484.1 won).
The exchange rate started at 1,472.0 won, down 3.6 won reflecting expectations of U.S. interest rate cuts, then reduced its decline before rising to 1,477.3 won near the close of daytime trading.
Foreign investors, who had been net buyers early in the domestic stock market session, turned to net selling, pushing up the exchange rate.
The KOSPI closed at 3,846.06, down 7.20 points (0.19%) from the previous day. Foreigners net sold approximately 429.8 billion won in the securities market on this day.
Seo Jeong-hoon, chief research fellow at Hana Bank, explained, “It appears that foreigners turning to selling today acted as an upward factor for the exchange rate,” adding, “Risk aversion sentiment has grown due to concerns about artificial intelligence (AI) overvaluation, and our stock market is particularly affected by this.”
However, wariness of foreign exchange authority intervention acted as a factor reducing the extent of the exchange rate increase.
The Ministry of Economy and Finance, Bank of Korea, National Pension Service, and Ministry of Health and Welfare held a closed meeting on this day to discuss exchange rate stabilization measures through the National Pension Service, a major supply and demand entity.
The dollar index, which represents the dollar’s value against the currencies of six major countries, was at 100.143, up 0.08% from the previous trading day.
As of 3:30 PM, the won-yen cross rate was 943.08 won per 100 yen. This was up 3.90 won from the previous trading day’s 3:30 PM reference rate of 939.18 won.
The yen-dollar exchange rate was 156.614 yen, down 0.31%.