The won closed daytime trading at 1,527.0 per dollar, up 0.1 won from the previous session, according to Seoul foreign exchange market data.
The currency came under heavy pressure early in the session as the dollar strengthened on expectations that the Fed would keep policy tight for longer amid persistent inflation risks.
The won opened at 1,537.4 per dollar, down 10.3 won from the previous close, and weakened as far as 1,539.5 during intraday trading, putting the 1,540 level back in sight.
But the move lost steam in the afternoon, with the won recovering sharply toward the previous day’s closing level. Market participants said the reversal appeared to reflect growing caution over possible smoothing operations by the foreign exchange authorities near the 1,540 threshold.
Foreign exchange officials did not confirm whether any intervention had taken place. Still, traders said the authorities’ repeated warnings against one-sided moves in the currency market likely helped cap the dollar-won rate.
The bond market also remained under pressure, as expectations of tighter monetary policy at major central banks, including the Bank of Korea, weighed on sentiment.
The yield on three-year government bonds rose 3.4 basis points to 3.784 percent, while the 10-year yield climbed 5.3 basis points to 4.171 percent. Bond yields move inversely to prices.
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