Won-Dollar Exchange Rate Plunges by 30 Won, Closes at 1,525 on Dollar Weakness and Yen Strength

[Financial News] The won-dollar exchange rate plunged by more than 30 won in a single day, falling back into the 1,520-won range.
In the Seoul foreign exchange market on the 3rd, the won-dollar rate closed the daytime session at 1,525.60 won, down 30.20 won from the previous trading day at 3:30 p.m. The drop was the steepest since a 33-won plunge in early April.
The rate opened at 1,544.5 won and quickly fell to the 1,530-won range in the morning. It then fluctuated before widening its losses late in the session and slipping into the 1,520-won range.
The previous day, the rate had climbed to as high as 1,555.8 won, its highest level since March 2009 during the Global Financial Crisis (GFC). But it gave back most of those gains within a day.
Overnight, U.S. nonfarm payrolls for June came in far below market expectations, slowing the dollar's strength.
The U.S. Dollar Index (DXY), which measures the dollar against six major currencies, fell 0.532 from the previous day to 100.703.
The yen also strengthened on the impact of intervention by Japan's foreign exchange authorities, adding pressure for the won to rise. At the same time, the yen-dollar rate fell 1.274 yen to 160.977 yen.
In the Forex market, the view that the exchange rate had reached a short-term peak spread, prompting exporters to sell dollars. Analysts also said long positions were being unwound in the options market.
Meanwhile, foreigners sold a net 220 billion won worth of shares on the Korea Exchange Main Board that day, but the move appeared to have only a limited effect on the exchange rate.
imne@fnnews.com Hong Ye-ji Reporter