[Seoul Foreign Exchange Market]Dollar-Won Approaches 1,470 Level as Yen Weakens

(Seoul=Yonhap Infomax) Sun Young Jung – The dollar-won exchange rate climbed close to the 1,470-won mark on June 20.

As of 13:44 KST in the Seoul foreign exchange market, the dollar-won was trading at 1,468.80, up 3.20 won from the previous session.

During afternoon trading, the rate reached an intraday high of 1,469.70 won.

The surge in the dollar-won was influenced by the dollar-yen rate, which jumped into the 157-yen range.

In response to the yen’s depreciation, Japanese authorities issued verbal warnings. Minoru Kihara, Japan’s Chief Cabinet Secretary, said at a regular press briefing, “There are unilateral and rapid movements,” adding, “We are concerned.” He further stated, “Authorities will closely monitor the market as the yen weakens against the dollar.”

South Korea’s benchmark KOSPI index rose over 3%.

Foreign investors were net buyers of 539.6 billion won ($389 million) in stocks on the Korea Exchange’s main board.

A bank FX dealer commented, “The dollar-won is tracking the dollar-yen’s upward movement. However, unlike yesterday, foreign investors have turned net buyers in equities, so the upside pressure is not as strong.”

He added, “While the dollar-won has risen, there is some resistance to a significant move above the 1,470-won level. Due to official vigilance and export-related dollar selling, movements above 1,470 are expected to be limited.”

The dollar index rose to 100.23.

At the same time, the dollar-yen rate surged 0.39 yen to 157.34, while the euro-dollar rate slipped 0.0006 to 1.1510.

The yen-won cross rate stood at 933.43 won per 100 yen, and the yuan-won rate was 206.31 won.

The offshore dollar-yuan (CNH) rate rose to 7.1184 yuan.

syjung@yna.co.kr

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Trend Analysis

The dollar-won exchange rate is approaching its highest level in recent months, driven by a sharp depreciation of the yen and strong dollar momentum. The KOSPI’s robust gains and foreign investor inflows are helping to cap further upside in the won’s depreciation. Market participants expect movements above 1,470 won to remain limited due to regulatory vigilance and exporter dollar sales.