The won-dollar exchange rate continues to show strength in the 1500 won range.
As of 10:08 a.m. on June 5, the exchange rate in the Seoul foreign exchange market stood at 1543.8 won per dollar, down 0.7 won from the previous session's close of 1529.0 won. This marks the first time the rate has exceeded 1540 won during trading since March 10, 2009, when it reached 1561.0 won.
The rate hit the 1540 won mark during overnight trading, reaching its highest level since the global financial crisis. Although it opened lower today, ongoing foreign net selling in the domestic stock market appears to be exerting upward pressure on the exchange rate.
At the same time, foreign investors sold a net 15.21 trillion won in the securities market, contributing to a decline in the index.
In the previous night’s trading, U.S. stocks showed mixed results. The Dow Jones Industrial Average closed up 874.86 points, or 1.73%, at 51,561.93.
The S&P 500 index rose by 30.63 points, or 0.41%, to close at 7,584.31, while the Nasdaq Composite Index fell by 23.02 points, or 0.09%, ending at 26,830.96.
International oil prices declined after Israel and Lebanon agreed to implement a ceasefire. August futures for Brent crude settled at $95.03 per barrel, down 2.8%, while July futures for West Texas Intermediate (WTI) crude closed at $93.04 per barrel, a decrease of 3.1%.
Min Kyung-won, an economist at Woori Bank, stated, "Today, the won-dollar exchange rate is expected to attempt to stabilize in the 1530 won range, driven by foreign net selling triggered by profit-taking in semiconductor stocks. The semiconductor rally has shown signs of slowing following Broadcom's earnings report, which could lead to continued outflows of foreign capital from the domestic market known as memory trades."
He added, "This selling is more than just profit-taking; it has a strong rebalancing nature, which is increasing demand for foreign remittances in the foreign exchange market, causing ongoing upward pressure on the exchange rate. If the symbolic level of 1530 won is breached, speculative buying could further contribute to a weakening of the won."
* This article has been translated by AI.
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