Foreign Stock Purchases Drive Exchange Rate to Lowest Level Since Middle East War (Update)
Closing at the Low 1,460 Won Range
Ends Down by 20.5 Won
The USD-KRW exchange rate fell to the low 1,460 won range, largely due to foreign investors purchasing nearly 4 trillion won worth of domestic stocks in a single day.
On the 4th, the electronic display board at the KB Kookmin Bank dealing room in Yeouido, Seoul, shows the KOSDAQ, KOSPI, and USD-KRW exchange rates. Provided by Kookmin Bank
View original imageOn May 4 in the Seoul foreign exchange market, the USD-KRW exchange rate closed weekly trading at 1,462.8 won, down 20.5 won from the previous trading day. As of the 3:30 p.m. weekly closing price, this is the lowest level since February 27 (1,439.7 won), just before the outbreak of the Middle East war.
On this day, the USD-KRW exchange rate started at 1,472.9 won, down 10.4 won from the previous trading day, and immediately dropped to 1,469.9 won. This was influenced by the decline in international oil prices after U.S. President Donald Trump announced an operation to rescue third-country vessels trapped in the Strait of Hormuz overnight.
Afterward, the rate rose to 1,475.0 won around 11 a.m., but in the afternoon, the decline widened again, ending weekly trading at the intraday low.
The drop in the exchange rate appears to have been largely driven by foreign investors making large-scale purchases of domestic stocks. In the KOSPI market on this day, foreigners recorded a net purchase of 3.9623 trillion won in stocks, leading to a rise in the KOSPI index and a fall in the exchange rate. Individuals posted a net sale of 6.3364 trillion won, while institutions recorded a net purchase of 2.5568 trillion won.
The Dollar Index (DXY), which measures the value of the U.S. dollar against the currencies of six major countries, showed a sideways trend, closing at 98.111, down 0.081 from the previous day.
Hot Picks Today
If They Fail Next Year, Bonus Drops to 97 Million Won... A Closer Look at Samsung Electronics DS Division’s 600M vs 460M vs 160M Performance Bonuses
- Opening a Bank Account in Korea Is Too Difficult..."Over 150,000 Won in Notarization Fees Just for a Child's Account and Debit Card" [Foreigner K-Finance Status]②
- KCCI: "Samsung Electronics Labor-Management Agreement Is Fortunate... Highly Significant for the National Economy"
- Room Prices Soar from 60,000 to 760,000 Won and Sudden Cancellations: "We Won't Even Buy Water in Busan" — BTS Fans Outraged
- "Who Is Visiting Japan These Days?" The Once-Crowded Tourist Spots Empty Out... What's Happening?
The KRW-JPY cross rate stood at 932.94 won per 100 yen as of 3:30 p.m., up 9.57 won from the previous trading day. The JPY-USD exchange rate was recorded at 156.877 yen, down 0.148 yen.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
!["Please Help Us": How Much Do Those Bowing 90 Degrees These Days Actually Earn? [Data Pick]](https://cwcontent.asiae.co.kr/asiaresize/307/2026052010120870131_1779239528.png)
