Won-Dollar Exchange Rate Closes at 1307.7 Won... Falls for 4 Consecutive Trading Days (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] The won-dollar exchange rate fell for the fourth consecutive trading day.

On the 21st, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,307.7 won, down 5.2 won from the previous trading day's closing price. The won-dollar exchange rate started at 1,313.0 won and moved sideways in the early session before widening its decline.

On the day, the euro rose following news of Russia resuming gas supplies, which weakened the dollar's strength. According to foreign media, Russia restarted Nord Stream 1, the gas pipeline supplying natural gas to Germany and other parts of Europe.

In the domestic stock market, increased foreign buying also contributed to the exchange rate decline. On the day, foreigners net purchased 439.7 billion won in the KOSPI market, leading the upward trend. The KOSPI closed at 2,509.16, up 22.31 points from the previous trading day, regaining the 2,400 level for the first time in 17 trading days.

A foreign exchange market official said, "As risk appetite partially revived, foreigners engaged in net buying in the domestic stock market, and the exchange rate showed a downward trend due to bets on the European Central Bank (ECB) rate hike."

Meanwhile, the Bank of Japan (BOJ) decided to maintain its large-scale monetary easing policy. At the monetary policy meeting held that day, the BOJ announced it would keep the short-term interest rate at -0.1% and continue large-scale monetary easing by purchasing an unlimited amount of long-term government bonds to guide the 10-year government bond yield, a long-term interest rate indicator, to around 0%.

As of 3:30 p.m., the won-yen recalculated exchange rate stood at 945.31 won per 100 yen.

This content was produced with the assistance of AI translation services.