Won-Dollar Exchange Rate Falls to 1,471.1 Won Amid Exporter Hedging and Foreign Buying

The won-dollar exchange rate fell to the low 1,470 won range today (the 21st) due to dollar-selling demand following the listing of SK Hynix's American Depositary Receipts (ADR).

While the yen remains weak, the won has turned strong, pushing the won-yen cross rate to its lowest level in one year and eight months.

In the Seoul foreign exchange market, the daytime closing price of the won against the U.S. dollar (as of 3:30 p.m.) was recorded at 1,473.4 won, down 5.0 won from the same time the previous day.

The exchange rate has now declined for six consecutive trading sessions in daytime trading.

The rate opened at 1,477.6 won and fluctuated before hitting 1,480.4 won at 10:00 a.m.

However, it quickly reversed its gains, moved below the previous day's daytime closing price, and expanded its downward trend.

Around 3:03 p.m., it dropped as low as 1,471.1 won.

This marks the lowest level since May 11 (1,465.6 won).

Increased dollar supply, including the release of dollar-selling (negotiation) orders from exporters, led the decline again today.

Since the beginning of this month, currency hedging orders, primarily from exporters and heavy industry companies, have been flowing into the foreign exchange market, appearing to pull the exchange rate down.

The 26.5 billion dollars (approximately 40 trillion won) raised through SK Hynix's ADR listing is also being converted sequentially, contributing to the won's strength.

Although the KOSPI is struggling, the growing perception that it is undervalued has led foreigners to net buying, which is also supporting the downward trend of the exchange rate.

In the domestic stock market, foreigners recorded a net purchase of 295 billion won.

This marks two consecutive trading sessions of net buying.

However, geopolitical uncertainty remains an unfavorable factor for the won.

The dollar strengthened overnight as the armed conflict between the United States and Iran escalated toward the risk of a full-scale resumption.

The dollar index, which measures the value of the dollar against six major currencies, rose 0.17 to 100.915 from the previous day.

At the same time, the won-yen cross rate was 906.54 won per 100 yen, down 3.83 won.

This is the lowest level since November 25, 2024 (905.7 won).

The yen-dollar exchange rate was 162.524, up 0.15 yen.

The yen-dollar rate climbed to 162.837 yen on the 1st, marking its highest level in 39 and a half years since December 1986, shortly after the Plaza Accord.

Since then, it has been hovering in the 161 to 162 yen range.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.