Won weakens for a sixth straight session despite intervention watch… breaks past 1,450 per dollar

The won/dollar exchange rate rose for a sixth consecutive session despite heightened vigilance over possible intervention by the foreign-exchange authorities, climbing above 1,450 won.

In Seoul’s FX market on the 8th, the won’s onshore spot close against the U.S. dollar (as of 3:30 p.m.) was tallied at 1,450.6 won, up 4.8 won from the previous day.

The rate opened at 1,449.7 won, up 3.9 won, and fluctuated in the upper 1,440s before jumping into the 1,450 range just ahead of the close. The intraday high was 1,450.8 won.

After falling to 1,429.8 won on the 29th of last month on intervention by the FX authorities, the exchange rate has since risen for six straight trading sessions.

Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol said at a morning market situation review meeting, “As the current exchange rate is diverging from fundamentals, it is important for policymakers to continue firm and consistent policy efforts.”

In the stock market, foreign investors were net sellers of Korean equities by roughly 100 billion won. The Kospi hit 4,620 intraday for the first time on record, before ending in the 4,550 range.

The dollar index, which measures the greenback’s value against a basket of six major currencies, rose to as high as 98.776 in the morning before easing slightly to 98.693.

Oh Se-seong, Hankyung.com reporter sesung@hankyung.com