Exchange rate breaks 1480 won intraday on foreign selling·dollar strength… highest in 8 months

The won-dollar exchange rate exceeded 1480 won intraday on the 17th. It is showing an upward trend due to foreign investors' selling of domestic stocks and other factors.

In the Seoul foreign exchange market, the won against the U.S. dollar was 1481.4 won at 11:30 a.m., up 4.4 won from the previous day. Around 11:08 a.m., it rose to 1482.3 won, marking the highest level in about 8 months since April 9 (1487.6 won).

Foreign investors were net-selling close to 300 billion won on the stock market that day. The dollar has also strengthened compared with just after the market opened.

The dollar index, which represents the value of the dollar against the currencies of six major countries, rose from 98.172 around 10:23 a.m. to 98.300 around 11:17 a.m.

According to Yonhap News Agency, it has been confirmed that the foreign exchange authorities recently actually activated the foreign exchange swap agreed with the National Pension Service. However, the specific timing and scale have not been disclosed.

There is an interpretation that the swaps may have been resumed following the agreement on the 15th to extend the foreign exchange swap contract for one year with an annual cap of $65 billion.

The foreign exchange authorities expect that foreign exchange swap transactions can absorb the National Pension Service's demand for spot currency purchases when the foreign exchange market is unstable, thereby contributing to market stability.

Shin Yonghyun, Hankyung.com reporter yonghyun@hankyung.com