"Dollar Breaks Above 1,550 Intraday"... Won-Dollar Exchange Rate Hits Highest Level in 17 Years

[Financial News] The won-dollar exchange rate once again broke above the 1,550 won mark intraday. On a closing basis, it also reached its highest level since March 2009, during the Global Financial Crisis (GFC), extending its recent highs.
In the Seoul foreign exchange market on the 30th, the won-dollar exchange rate closed the day at 1,549.4 won, up 4.2 won from the previous trading day. It opened at 1,543.1 won in early trading, but reversed course soon after the market opened and climbed as high as 1,550.4 won during the session.
It was the first time in 16 trading days that the rate had moved above 1,550 won intraday, since the 8th, when it hit an intraday high of 1,555.2 won. Based on the daily closing rate, it was the highest level since March 6, 2009, when it closed at 1,550.0 won. It also broke the previous post-crisis high set the day before.
Through the 30th, the won-dollar exchange rate had stayed in the 1,500-won range for 31 consecutive trading days. The average exchange rate for the second quarter of this year was also tallied at 1,501.6 won, the highest quarterly average since the IMF Crisis.
Market watchers say a combination of a stronger dollar, net selling of domestic stocks by foreign investors, and a weaker Japanese yen has intensified pressure on the won.
As expectations for the Federal Reserve System (Fed)'s monetary policy continue to shift in favor of the dollar, the U.S. Dollar Index (DXY), which measures the dollar's value against six major currencies, is hovering around the 101 level. As of 3:30 p.m. that day, the DXY stood at 101.327, up 0.052 points from the same time the previous day.
Foreign investors also continued to pull out of the domestic stock market. On the Korea Exchange Main Board, foreigners sold a net 380 billion won worth of shares that day, marking eight straight sessions of net selling. The previous day, they recorded an all-time high net selling of about 770 billion won.
Analysts are also noting that dollar-buying sentiment has not eased easily because geopolitical tensions in the Middle East remain unresolved. Even with hopes of easing tensions between the United States and Iran, global investors' preference for safe-haven assets is keeping the exchange rate from falling sharply.
Min Kyung-won, a researcher at Woori Bank, said, "A ceasefire agreement between the United States and Iran is still incomplete, and the dollar's downside is limited, so I do not expect a large drop in the exchange rate."
imne@fnnews.com Hong Ye-ji Reporter