The won-dollar exchange rate fell by more than 30 won on July 3 as the U.S. dollar weakened following lower-than-expected U.S. employment data and the Japanese yen rebounded.

In the Seoul foreign exchange market, the daytime closing price of the won against the U.S. dollar was 1,525.6 won, down 30.2 won from the same time the previous day.

The exchange rate had soared to 1,555.8 won the previous day, marking its highest level since March 5, 2009, when it reached 1,568.0 won during the global financial crisis. However, it halted its upward trend to reflect the overnight weakness of the dollar.

The rate had risen by a total of 23.8 won over the four consecutive days leading up to yesterday, but it has now wiped out all those gains and fallen further.

The daytime closing price on this day is the lowest since June 17, when it stood at 1,513.4 won.

The scale of the decline was the largest in three months, since April 8, when it fell by 33.6 won.

The exchange rate opened at 1,544.5 won, down 11.3 won, and followed a downward path, dropping to the 1,530 won range around 10:20 a.m.

After fluctuating, it rapidly increased its downward momentum around 3:00 p.m., falling into the 1,520 won range in an instant.

The drop in the exchange rate is attributed to the combination of a weaker dollar and a stronger yen.

The U.S. non-farm payrolls for June, released overnight, increased by 57,000 from the previous month, significantly missing the market expectation of 110,000.

As expectations for U.S. interest rate hikes receded, the dollar turned toward a downward trend.

The dollar index, which measures the value of the dollar against six major currencies, retreated from its high-altitude run at the 101 level.

As of 3:30 p.m., it stood at 100.703, down 0.532 from the reference price at the same time the previous day.

The yen, which had fueled the weakness of the won by falling to its lowest level in 40 years, turned to a strong trend, helping to push the exchange rate down.

This is due to the impact of overnight intervention by authorities.

As of 3:30 p.m., the yen-dollar exchange rate was 160.977 yen, down 1.274 yen.

As a result, the perception that the exchange rate had peaked and was heading downward spread, leading to dollar selling by exporters. Additionally, buying sentiment in the options market that had anticipated a rise in the exchange rate was quickly liquidated, which is interpreted as having further intensified the downward trend.

It is also estimated that intervention by foreign exchange authorities was released toward the end of the trading session.

Traditionally, the Bank of Japan has often intervened during U.S. market holidays, and there is speculation that South Korean foreign exchange authorities may have intervened in tandem, coinciding with the U.S. Independence Day substitute holiday.

Foreign investors net sold 2.2 trillion won in the domestic stock market, but the speed of the exchange rate decline was faster.

The won-yen cross rate was 947.64 won per 100 yen, down 11.19 won.