Won-Dollar Exchange Rate Closes in 1,480 Won Range for Second Day, Nearing Annual High (Update)

Weekly Trading Closes at 1,483.6 Won
Intraday High Reaches 1,484.3 Won

The won-dollar exchange rate closed higher for the second consecutive day in the 1,480 won range, coming very close to the annual high recorded in April.

On the 23rd, the won-dollar exchange rate was displayed on the status board in the Shinhan Bank dealing room in Jung-gu, Seoul.

On December 23, in the Seoul foreign exchange market, the won-dollar exchange rate stood at 1,483.6 won as of 3:30 p.m., up 3.5 won from the previous trading day. Based on weekly closing prices, this is the highest level in about eight months since April 9, when it reached 1,484.1 won, marking both the annual peak and the highest level since the financial crisis. The difference from the annual high was only 0.5 won.

The won-dollar exchange rate opened at 1,480.0 won, down 0.1 won from the previous weekly closing price. However, it quickly gained upward momentum after the opening, fluctuating in the 1,483 won range throughout weekly trading, and surged to as high as 1,484.3 won during the session. Based on the intraday high, the won-dollar exchange rate also reached its highest point since April 9, when it hit 1,487.6 won.

Although the foreign exchange authorities have been announcing measures to curb the high exchange rate trend, the market analysis suggests that buying pressure for overseas investment has once again become dominant. In addition, continued dollar buying by importers for settlement purposes contributed to the upward trend. The dollar index (DXY), which measures the value of the dollar against the currencies of six major countries, fell by 0.18% from the previous trading day to 98.10. The yen-dollar exchange rate dropped to the 156-yen range on the same day, following verbal intervention by Japanese foreign exchange authorities.

In the domestic stock market, expectations for a year-end "Santa rally" led foreign investors to post a net purchase of 955 billion won, which helped cap the upper end of the won-dollar exchange rate. The KOSPI closed at 4,117.32, up 0.28% from the previous session.