Won Tops 1,560 Per Dollar in Overnight Trading, Highest Since Global Financial Crisis

The won rose past 1,560 per dollar in overnight trading, reaching its highest intraday level in more than 17 years since the global financial crisis.

In Seoul's overnight foreign-exchange market on June 6, the won-dollar exchange rate closed at 1,559.0 per dollar as of 2 a.m. That was 19.9 won higher than the previous day's daytime close.

The exchange rate surged to as high as 1,561.5 per dollar shortly before the overnight session ended. It marked the highest intraday level since March 6, 2009, when it hit 1,597.0 during the global financial crisis, about 17 years and three months ago.

Earlier, in daytime trading on June 5, the won climbed to 1,549.1 per dollar at about 10:27 a.m. It then moved between the 1,530 and 1,540 levels before ending the daytime session at 1,539.1.

The climb steepened in overnight trading. The exchange rate began rising rapidly from about 9:30 p.m., when US jobs data were released, and broke through the psychologically important 1,550 and 1,560 thresholds in succession.

The move was attributed to a stronger dollar compounding pressure on the won from foreign investors' selling of domestic stocks and the prolonged war in the Middle East.

The US May employment report released that evening showed labor-market conditions were better than expected, reinforcing expectations for a policy rate increase later this year.

The dollar strengthened broadly. The dollar index, which tracks the US currency against six major peers, rose above 100 for the first time in two months since April.

Lee Song-ryul, Hankyung.com reporter yisr0203@hankyung.com