Won-Dollar Exchange Rate Closes Up Nearly 16 Won... "Volatility to Continue for the Time Being" (Update)

[Image source=Yonhap News]

The won-dollar exchange rate closed up nearly 16 won.

According to the Seoul foreign exchange market on the 1st, the won-dollar exchange rate closed at 1,305.8 won, up 15.8 won from the previous day.

The exchange rate opened at 1,300 won, up 10.0 won, and continued to rise, reaching as high as 1,307.8 won.

The euro's weakness and the dollar's strength contributed to the rise in the exchange rate, and foreigners net sold about 167.1 billion won worth of securities in the stock market, pushing the exchange rate higher.

Park Sang-hyun, a researcher at Hi Investment & Securities, said, "Recently, the won-dollar exchange rate has been fluctuating unusually by more than 15 won per day," adding, "When it drops to the 1,280 won range, dollar buying pressure comes in, and when it enters the 1,300 won range, dollar selling pressure emerges."

Park said, "Although the euro and yuan weakness led to dollar strength today, the recent sharp volatility in the exchange rate ultimately reflects a lack of confidence in the domestic economic fundamentals," and added, "With ongoing uncertainties about major countries' monetary policies and the current challenging domestic economic situation, the domestic foreign exchange market seems to be more affected by external environmental changes."

He continued, "This afternoon, the new economic chief gave a farewell speech as a member of the Monetary Policy Committee, expressing concerns about household debt and real estate project financing (PF)," adding, "This was interpreted as a potential risk, which may have also influenced the market to some extent."

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