The won-dollar exchange rate has fallen to the 1420 won range as investor preference for risk assets has recovered.
As of 9:21 a.m. in the Seoul foreign exchange market, the exchange rate for the Korean won against the U.S. dollar stood at 1428.7 won. Earlier, at 6 a.m., the rate was trading at 1418.0 won, down 19.40 won from the previous session.
This decline is attributed to a recovery in risk appetite among investors. The dollar index, which measures the value of the dollar against six major currencies, dropped 1.02% to 99.94.
U.S. stock markets also showed strong performance. The Dow Jones Industrial Average closed up 613.92 points (1.19%) at 52,208.06.
The Standard & Poor's 500 index rose 121.48 points (1.66%) to finish at 7,437.63, while the Nasdaq Composite gained 679.24 points (2.78%) to close at 25,122.18.
In the domestic market, foreign investment has surged for the second consecutive day. Early in the trading session, foreign investors net purchased 3.8631 trillion won in the stock market.
International oil prices fell amid discussions on multinational maritime defense in the Red Sea. September futures for Brent crude oil dropped 1.4% to $86.88 per barrel, while September futures for West Texas Intermediate (WTI) fell 1.0% to $83.59 per barrel.
The exchange rate is expected to fluctuate in the low 1420 won range today. Min Kyung-won, an economist at Woori Bank, stated, "Despite expectations for a weaker dollar and improved regional supply, buying pressure is likely to keep the rate fluctuating in the low 1420 won range. With the recovery in risk appetite, a favorable trend is anticipated in the domestic market, particularly in semiconductor and technology stocks, which may lead to continued upward pressure on the won due to foreign investors returning."
* This article has been translated by AI.
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