▲ Dealers work at the dealing room of Hana Bank headquarters in Seoul on the 26th, where the KOSPI closed up 65.47 points (0.97%) from the previous day at 6,808.21.
The won-dollar exchange rate hovered in the mid-1,380 won range a day ahead of the Bank of Korea Monetary Policy Board's interest rate decision.
In the Seoul foreign exchange market today (the 26th), the won-to-dollar exchange rate stood at 1,384.8 won as of 3:30 p.m., down 1.3 won from the same time the previous day.
The exchange rate started at 1,383.0 won and rose to as high as 1,388.30 won around 12:21 p.m.
The easing of geopolitical risks and dollar-selling by domestic semiconductor exporters appear to have driven the decline in the exchange rate.
The New York Times reported that the United States is preparing to return diplomats to its embassy in the Middle East, which had been evacuated following the Iran war. As concerns related to U.S. sanctions against Iran eased, international oil prices fell.
Foreign stock selling has limited the drop in the exchange rate.
Foreign investors sold off 116.1 billion won worth of shares on the main bourse, extending their net selling streak to four consecutive trading sessions through today.
If the Monetary Policy Board raises interest rates tomorrow on the 27th, it would act as a factor strengthening the won.
However, projections suggest that even if rates are frozen, a hawkish (tightening-preferred) stance will likely persist.
U.S. price indicators, including the Personal Consumption Expenditures (PCE) index, are scheduled to be released tonight.
If figures exceed expectations, inflation concerns could spread, potentially causing the U.S. dollar to rebound amid tightening caution.
The dollar has been on a persistent downward trend as expectations for a rate hike by the U.S. Federal Reserve weaken and fiscal instability in the U.S. government comes to the spotlight.
The dollar index, which measures the greenback's value against six major currencies, rose 0.095 to 99.003, though it remains below 100.
The yen-dollar exchange rate fell 0.08 yen to 159.10 yen.
The won-yen cross exchange rate dropped 0.03 won to 870.46 won per 100 yen.
(Photo: Yonhap News)
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