Exchange rate hits 1,518 won intraday, marking the biggest swing in more than five months

[Financial News] The won-dollar exchange rate swung by more than 18 won intraday, posting its largest fluctuation so far this year. It briefly climbed above the 1,518 won level amid uncertainty over the Middle East and heavy net selling by foreign investors, but later gave up its gains and ended slightly lower as exporters sold dollars and the market watched for possible intervention by the authorities.
On the 1st, the won-dollar exchange rate closed at 1,504.3 won in the Seoul foreign exchange market, down 3.6 won from the previous trading day’s closing level at 3:30 p.m.
The rate opened at 1,508.8 won and at one point surged to 1,518.2 won in the morning. That was the highest level since 1,519.4 won recorded on the 22nd of last month.
In the afternoon, it turned downward and fell to as low as 1,500.0 won intraday before recovering slightly to finish around the 1,504 won range.
The gap between the day’s high and low was 18.2 won, the widest range since Dec. 26 last year, when it moved 24.8 won.
The rise in the exchange rate was attributed to renewed uncertainty surrounding the Middle East. As expectations for a ceasefire deal between the United States and Iran weakened, risk aversion increased and demand for the safe-haven dollar also rose.
Heavy net selling by foreign investors in the domestic stock market also added to upward pressure on the exchange rate. Although KOSPI closed at a record high of 8,788.38, foreign investors sold a net 2.9143 trillion won worth of shares. Net selling by foreigners continued for 16 consecutive trading days.
In the afternoon, however, the exchange rate fell quickly as exporters’ dollar-selling orders entered the market. At the upper end of the 1,500 won range, exporters actively sold dollars, and caution over possible fine-tuning by the foreign exchange authorities also influenced trading, analysts said.
Meanwhile, the U.S. Dollar Index (DXY), which measures the dollar’s value against six major currencies, fluctuated around the 99 level. The yen-dollar exchange rate moved in the 159 yen range, while the won-yen cross rate stood at 943.42 won per 100 yen.
[email protected] Hong Ye-ji Reporter