As the won/dollar exchange rate hovered above 1,430 won on the 13th due to renewed US-China trade tensions, foreign exchange authorities intervened verbally for the first time in a year and a half. The Ministry of Economy and Finance and the Bank of Korea jointly stated in a text message distributed to reporters that day, "The foreign exchange authorities are closely monitoring with vigilance the possibility of market쏠림 (concentration) during the recent widening of the won's volatility due to domestic and external factors." Yonhap News. The won/dollar exchange rate surged to the 1,430 won range on the 13th due to renewed concerns over US-China trade disputes, but closed in the mid-1,420s following verbal intervention by foreign exchange authorities.

On this day, the weekly closing price of the won/dollar exchange rate in the Seoul foreign exchange market (as of 3:30 PM) was 1,425.8 won, an increase of 4.8 won from the previous trading day.

This is the highest level in approximately five and a half months, since April 29th (weekly closing price of 1,437.3 won).

The exchange rate opened at 1,430.0 won, up 9.0 won from the previous trading day, and rose to 1,434.0 won in early trading.

This is believed to be due to heightened risk aversion sentiment amid delayed conclusions in US-South Korea tariff negotiations and concerns over an escalation of the US-China trade war.

Following China's recent tightening of rare earth export controls, US President Donald Trump retaliated on the 10th, announcing an additional 100% tariff on China effective November 1st.

Net selling of domestic stocks by foreign investors also exerted upward pressure on the exchange rate today.

The KOSPI closed at 3,584.55, down 26.05 points (0.72%) from the previous day. Foreign investors net sold approximately 820.4 billion won in the stock market.

Foreign exchange authorities intervened verbally when the exchange rate, which had been mainly moving in the late 1,420s, exceeded 1,430 won again for a time in the afternoon.

The Ministry of Economy and Finance and the Bank of Korea jointly stated in a text message distributed to reporters that day, "The foreign exchange authorities are closely monitoring with vigilance the possibility of market concentration during the recent widening of the won's volatility due to domestic and external factors."

This joint verbal intervention by the Ministry of Economy and Finance and the Bank of Korea is the first in one year and six months, since mid-April of last year when the exchange rate rose to around 1,400 won due to instability in the Middle East.

Shortly after the market opened today, transactions were made at around 1,330 won, about 100 won lower than the price at that time, but these were later canceled due to confirmation as errors.

The dollar index, which measures the value of the dollar against six major currencies, was at 98.862, down 0.49% from the previous trading day.

As of 3:30 PM, the won/yen cross rate was 939.11 won per 100 yen, an increase of 9.47 won from the previous day's closing rate (929.64 won).

The yen/dollar exchange rate was 151.822 yen, down 0.67% from the previous trading day.

Yonhap News