Exchange Rate Surpasses 1,560 Won, Highest Since Financial Crisis (Comprehensive)

Touches 1,560 Won Level in Overnight Trading Amid Foreigner Selling on KOSPI and Strong US Employment Data

Won/Dollar Exchange Rate Rises · KOSPI Closes Lower [Seoul=Yonhap News]

By Lee Do-heun, Correspondent Lee Ji-heon = The won/dollar exchange rate has surpassed the 1,560 won per dollar mark for the first time in 17 years.

In overnight trading on the Seoul foreign exchange market, the exchange rate against the US dollar closed at 1,559.0 won per dollar at 2 AM on the 6th. This represents a 19.9 won increase solely in overnight trading compared to the closing price of the previous week's trading on the 5th.

The exchange rate reached a high of 1,561.5 won per dollar during intraday trading shortly before the close of overnight trading.

This marks the highest level in 17 years and 3 months, since March 6, 2009 (intraday high of 1,597.0 won) during the global financial crisis.

Previously, the exchange rate had surged to 1,549.1 won around 10:27 AM during the trading session on the 5th, but after fluctuating between the 1,530s and 1,540s, it closed the weekly trading at 1,539.1 won.

During the subsequent overnight trading, the rate rose sharply from around 9:30 PM immediately after the release of US employment data, sequentially breaking through the psychological resistance levels of 1,550 and 1,560 won to reach its peak.

It is believed that the strengthening dollar trend, coupled with increased pressure for won depreciation due to foreign selling of stocks and the prolonged Middle East conflict, contributed to the rise in the exchange rate.

The US May employment report, released on the evening of the same day, showed unexpectedly strong employment conditions, reinforcing expectations for an interest rate hike within the year.

As a result, the dollar strengthened, and the dollar index, which measures the value of the dollar against a basket of six major currencies, surpassed 100 for the first time in two months since April.