Weekly Close at 1,465.7 Won... Another Record High
Yen Weakness Impacts Asian Currencies
The won-dollar exchange rate surpassed the 1,470 won mark during intraday trading for the first time in about seven months. The dollar continued to strengthen due to the weak yen, resulting in a second consecutive day of gains.
On the 12th, a dealer is looking at the electronic display board in the dealing room at Shinhan Bank headquarters in Seoul. Photo by Shinhan Bank
On this day, the won-dollar exchange rate in the Seoul foreign exchange market closed weekly trading at 1,465.7 won as of 3:30 p.m., up 2.5 won from the previous trading day. This is the highest level in about seven months since April 9, when it reached 1,481.1 won. Although the increase was smaller than the previous day’s rise of 11.9 won, the rate ended above 1,460 won for the second day in a row.
The won-dollar exchange rate opened at 1,461.0 won, down 2.3 won from the previous trading day, due to weaker-than-expected U.S. employment data. However, it showed strong upward momentum throughout the morning, and around noon, it even reached 1,470.0 won. This is the first time the rate has climbed into the 1,470 won range since April 9, when it recorded 1,487.6 won.
This upward trend is interpreted as being linked to the weak yen. Expectations for economic recovery grew as the U.S. federal government moved to end its shutdown, which led to continued strength in the dollar, while the yen weakened.
Foreign investors’ net selling of approximately 428 billion won in the domestic stock market also contributed to the rise in the exchange rate. The dollar index (DXY), which measures the value of the dollar against the currencies of six major countries, stood at 99.565, down 0.07% from the previous trading day.
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