Dollar-won 1,500won range, foreign selling and a clash with authorities
The dollar-won exchange rate closed at 1,500won for the first time in about a month. This week, funds from foreign investors’ stock sales are expected to face off against authorities’ efforts to manage the pace of the exchange rate’s movements.
![Dollar-won 1,500won range, foreign selling and a clash with authorities]/blog-images/gen-74dd759e-fc4e-4da9-a417-973bebf2cd01.avif)
5From 18 to 22 in the Seoul foreign exchange market, the dollar-won exchange rate is expected to move in the low 1,500won range. The standoff between funds from foreign investors’ stock sales and foreign exchange authorities’ efforts to manage the pace of the exchange rate’s movements is expected to continue. The exchange rate’s upside may be limited by the authorities’ response, according to forecasts.
After the recent rise in the KOSPI, foreign investors concentrated on taking profits. Demand increased for converting dollars and sending them overseas after foreign investors sold domestic stocks. This trend pushed up the dollar-won exchange rate, which closed at 7for the first time in about a month since 1,500 last month.
The dollar’s strength continued in overnight trading. The pound weakened amid political uncertainty in the United Kingdom, while the dollar strengthened in relative terms. This increased upward pressure on the dollar-won exchange rate as well.
Even after the U.S.-China meeting, there was no positive news regarding an end to the war in Iran. Markets were dominated by efforts to reduce risk. Investors continued to seek safe-haven assets such as the dollar rather than riskier assets.
This week, the minutes of the U.S. Federal Open Market Committee meeting are also in focus. Although interest rates were held steady, the exchange rate could be affected by how strongly concerns about inflation were expressed. If pressure from U.S. interest rates rises again, the dollar could remain under upward pressure.
In South Korea’s stock market, foreign investors’ trading has been moving in tandem with exchange-rate trends. Increased stock selling could boost demand for dollars. Conversely, if foreign selling eases, upward pressure on the dollar-won exchange rate could also weaken.
Sources: 연합인포맥스
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.