Closed at 1,429.8 Won, Lowest Since November 3
Down for Three Consecutive Sessions, 53.8 Won Drop Over Three Days
On December 29, the won-dollar exchange rate fell to its lowest level in about two months. This was the result of a comprehensive effort by the foreign exchange authorities to stabilize the exchange rate, combined with a strong influx of foreign buying in the domestic stock market.
On the 26th, dealers are conversing in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Yonhap News
On this day, the closing price for weekly trading of the won-dollar exchange rate in the Seoul foreign exchange market (as of 3:30 p.m.) was 1,429.8 won, down 10.5 won from the previous trading day. This is the lowest level since November 3, when it stood at 1,428.8 won. The exchange rate opened at 1,440.0 won, down 0.3 won from the previous trading day, rose to as high as 1,442.1 won in early trading, and then plunged to as low as 1,429.1 won at one point in the afternoon.
The won-dollar exchange rate has closed lower for three consecutive trading days since December 24, with a cumulative drop of 53.8 won over the three-day period. On December 24, the Ministry of Economy and Finance and the Bank of Korea issued a strong verbal intervention message, stating that "an excessive weakening of the won is undesirable," and the government announced its plan for the Returnee Investment Account (RIA), which offers tax-exempt benefits. On December 26, news emerged that the National Pension Service had embarked on strategic currency hedging.
On this day, foreign investors recorded a net purchase of approximately 331.5 billion won in the KOSPI market.
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