Won Hits 1,549.8 Per Dollar Before Closing at 1,532.0 on Suspected Official Intervention

Suspected official dollar selling reverses the won's slide

Won posts first gain in five sessions but remains in the 1,500 range

The won climbed sharply late in the June 26 session after weakening to as low as 1,549.8 per dollar, as suspected official dollar selling entered the market and pushed the currency to a 1,532.0 close.

In Seoul's daytime trading, the won closed at 1,532.0 per dollar as of 3:30 p.m., up 10.7 won from the previous session. After rising to 1,542.7 won on June 25, its highest level since the global financial crisis, the exchange rate fell for the first time in five sessions.

The won opened at 1,547.3 per dollar, 4.6 won weaker than the previous close, and slid to 1,549.8 during the session. But ahead of the close, suspected intervention by foreign-exchange authorities and end-of-half dollar selling by exporters entered at the same time, sending the rate down to 1,526.0 won at about 3:14 p.m.

Even so, based on daytime-session closes, the won has stayed in the 1,500-per-dollar range for more than a month since May 15. That reflects continued dollar strength as expectations for further Federal Reserve rate increases have intensified.

The dollar index, which measures the US currency against six major peers, remained above 101 for a third straight day. It rose to as high as 101.565 before edging down to 101.403.

Lee Jeong-woo, Hankyung.com reporter, krse9059@hankyung.com