Exchange Rate Closes at 1380 Won Level... Pauses Following Foreign Exchange Swap Increase Announcement (Update)

Exchange Rate Closes at 1388.3 Won... Highest Closing in Two Months
Increase in National Pension Foreign Exchange Swap Announcement Narrows Gains

On the 21st, the won/dollar exchange rate started at 1,392.0 won, up 7.4 won. At a currency exchange booth in Myeongdong, Seoul, the won/dollar exchange rate was trading around 1,391.0 won. On this day, South Korea was excluded from the US currency watchlist again in the first half of this year, following the second half of last year. Photo by Jo Yongjun jun21@

The exchange rate, which was just about to break through 1,400 won in the early session, closed slightly lower following the foreign exchange authorities' announcement of an increase in the foreign exchange swap transaction limit with the National Pension Service.

On the 21st, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,388.3 won, up 3.6 won from the previous trading day. This is the highest level in two months since April 16, when it was 1,394.5 won at the close.

On that day, the won-dollar exchange rate opened at 1,392 won, up 7.3 won from the previous day, fluctuating between 1,380 and 1,390 won during the session. Afterwards, as the foreign exchange authorities announced an increase in the currency swap transaction limit with the National Pension Service, it fell to the high 1,380 won range.

Earlier that morning, the foreign exchange authorities (Bank of Korea, Ministry of Economy and Finance) announced that the foreign exchange swap limit with the National Pension Service would be increased from the existing 35 billion dollars to 50 billion dollars. This is interpreted as having slightly reduced the upward pressure on the exchange rate, which was close to breaking through 1,400 won in the early session.

The exchange rate is expected to fluctuate between 1,370 and 1,380 won for the time being. Choi Ye-chan, a researcher at Sangsangin Securities, said, "The depreciation trend of Asian currencies is unlikely to be resolved easily, so the exchange rate will fluctuate around the 1,380 won level for the time being," adding, "When the exchange rate surpassed 1,400 won during the session in April, the authorities hinted at verbal intervention, so government-level measures will continue to prevent the exchange rate from exceeding 1,400 won."

Kim Ho-jung, a researcher at Yuanta Securities, said, "There are no factors that would cause the exchange rate to fall immediately," and "It is expected to move between the mid-1,370 won range and the 1,380 won range until early July."

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