Won Rallies 22.8 Points to 1,358.2 as Exporters Sell Dollars
South Korea's currency closed at 1,358.2 won per dollar, down 1.65 percent from the previous session.
Key points
- The won closed at 1,358.2 per dollar, a 22.8 point drop from the previous day.
- Export corporations sold dollars, driving the rate down from the 1,380 range.
- The dollar index rose to 100.47, limiting further won appreciation.
The won-dollar exchange rate closed at 1,358.2 won on Friday. This represents a drop of 22.8 won from the prior trading day.
The currency moved from the 1,380 range to the 1,350 range in a single day. This marks the first significant shift after three days of stagnation.
Exporters drive sharp won gains
Major South Korean export companies sold dollars during the session. They acted as risk sentiment improved in global markets.
This selling pressure pushed the rate down from the 1,380 level. It reached the 1,370 range before the final close.
Dollar strength limits upside potential
The dollar index stood at 100.47 during the close. It had been 100.43 the previous day, showing persistent strength.
High U.S. Treasury yields continue to support the greenback. These factors weigh against the won despite local selling.
Importers and investors create demand
Importers buying raw materials overseas require dollars for payments. This steady demand supports the currency's value.
Individuals investing in U.S. stocks also buy dollars. Chosunbiz notes this retail demand keeps the rate elevated.
