Won briefly passes 1,560 against the dollar, highest in 17 years
The won-dollar rate briefly topped 1,560 in overnight trading, reaching its highest intraday level in 17 years and three months amid a stronger dollar and foreign outflows.
The won-dollar exchange rate briefly topped 1,560 won per dollar in overnight trading early Saturday, reaching its highest intraday level in 17 years and three months.
The won closed at 1,559.0 won against the dollar at 2 a.m. on the Seoul foreign exchange market’s overnight session, up 19.9 won from the daytime close on Friday.
The exchange rate rose as high as 1,561.5 won per dollar shortly before overnight trading ended. That was the highest intraday level since March 6, 2009, during the global financial crisis, when the rate reached 1,597.0 won.
During regular trading Friday, the exchange rate climbed to 1,549.1 won at around 10:27 a.m. before moving between the 1,530 won and 1,540 won levels. It ended the daytime session at 1,539.1 won.
The won rose sharply in the following overnight session from around 9:30 p.m., shortly after the release of U.S. employment data, breaking through the 1,550 won and 1,560 won levels.
The move appeared to reflect renewed dollar strength as the won came under pressure from foreign investors’ selling Korean stocks and the prolonged war in the Middle East.
The U.S. jobs report for May, released Friday evening, showed unexpectedly strong employment conditions, strengthening expectations of a policy rate increase within the year.
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The dollar strengthened in response, pushing the dollar index, which measures the dollar against six major currencies, above 100 for the first time in two months.
BY JEONG HYE-JEONG [[email protected]]
