Won-Dollar Exchange Rate Hits Lowest Level This Year... Falls to 1,330 Won Range Intraday for First Time in Nearly 2 Years (Update)

Weekly Close at 1,340 Won Range
Partial Rebound After National Pension Service Halts Currency Hedging

The Korean won to US dollar exchange rate fell to the 1,330-won range during intraday trading, closing the week at its lowest level so far this year.

On the 7th, employees are monitoring the stock market and exchange rates in the dealing room at the headquarters of Hana Bank in Jung-gu, Seoul. Photo by Yonhap News.

At 3:30 p.m. on the 7th at the Seoul foreign exchange market, the won-dollar exchange rate was recorded at 1,340.5 won, down 9.9 won from the previous trading day.

On this day, the exchange rate opened at 1,347.8 won and fell below 1,340 won around 9:30 a.m. It dropped as low as 1,334.7 won around 10 a.m. This is the lowest level in approximately 1 year and 11 months since October 4, last year (1,331.3 won). Based on weekly closing prices, the won-dollar exchange rate has declined for four consecutive trading days, with a cumulative drop of 29.9 won during this period.

Recently, the strong current account surplus and continuous dollar selling by exporters such as semiconductor companies have driven sustained strength in the won, overcoming other influencing factors. In addition, the US pressure on Japan to address the weak yen and large-scale exchange rate intervention by Japan led to a strengthening of the yen, further accelerating the drop in the exchange rate.

However, as the exchange rate entered the 1,330-won range, it rebounded following news that the National Pension Service had halted its currency hedging. The National Pension Service had implemented currency hedging strategies beginning in June, when the exchange rate surged into the 1,500-won range. Recently, as the won stabilized and even declined more rapidly, the fund ended its hedging and began to purchase US dollars instead.

Meanwhile, on this day in the domestic securities market, foreign investors made net purchases totaling 2.5535 trillion won. The US dollar index, which measures the dollar's value against six major currencies, was 99.097 at 3:30 p.m., up 0.10.

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