Dollar–won 1,500won level breaks, influenced by SK hynix forward sales

8The dollar–won exchange rate traded at 1,498.50won intraday in the afternoon session, falling below the 1,500won level. From an investor’s perspective, changes in the exchange-rate level affect foreign-currency fund flows.

At around 6a.m., the rate opened at 1,516.50won and at one point in the morning rose to 1,522.50won. The intraday atmosphere then changed sharply.

At 1p.m. 45minutes, the rate fell to 1,508.90won. Market participants said the decline widened from the previous day as long-stop orders poured in.

In the afternoon, 3 hours, 18 minutes, it traded at 1,499.70 won, and slipped to 1,498.10 won just before the close. At the Seoul session close, it was recorded at 1,498.50 won.

The market reported that dollar supply dominance strengthened as SK hynix offered forward dollar sales. It was reported that expectations of SK hynix listing American Depositary Receipts (ADRs) in the United States served as the backdrop.

There were also comments that some trades involved volumes believed to reflect intervention by the authorities. Amid vigilance over the authorities, the level continued to move lower.

Overnight, there was news that a ship 3 were struck near the Strait of Hormuz. This news, along with the Reserve Bank of New Zealand’s decision and other global factors, also affected global dollar flows the previous day.

Foreign-exchange market movements that day reflected a rapid alternation between dollar strength in the morning and dollar weakness in the afternoon. Flows in Seoul’s foreign-exchange market changed as several events unfolded in different directions during the session.