Dollar-won exchange rate 1,500re-entry into the won range, debate over won undervaluation
The dollar-won exchange rate has again 1,500recovered to the won range for the first time in just over a month. 5In 20 in the Seoul foreign exchange market, it briefly reached 1,513.40 won, and experts interpreted the recent sharp rise as a concentration of market activity, including foreign investors’ selling tendency.
The dollar-won exchange rate again reached the 1,500won range for the first time in just over a month. Some investors said the won was undervalued relative to fundamentals. The impact of this trend on the domestic stock market remains under observation.
In the Seoul foreign exchange market, 5on 20 morning, the dollar-won exchange rate briefly hit 1,513.40 won. This was its highest level since 4. During the day’s trading, it fluctuated in the 2 range.1,500 won
Previously, on 5, 7 the exchange rate had fallen as low as the 1,440 won range. Afterward, a sharp rise in the exchange rate was observed as large-scale foreign stock selling continued. Foreign selling is cited as a factor that increases exchange-rate volatility.
Experts said they interpret the recent sharp rise in the exchange rate as the result of one-sided market positioning rather than a combination of individual factors. They forecast that the exchange rate would stabilize at lower levels again once the temporarily overlapping adverse factors subside. However, they said its direction in the short term could depend on trading flows.
The market is currently watching the won's weakness and flows in foreign investor activity. Currency exposure among exporters and the share of holdings held by foreign investors are cited as factors that could shape the market's response. Some orders preparing for the possibility of further volatility have been observed.
Sources: 연합인포맥스
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