[Seoul Foreign Exchange Market]Dollar-Won Dips Below 1,470 Mark Intraday as Authorities Remain Vigilant Over Intervention

(Seoul=Yonhap Infomax) Sun Young Jung – The dollar-won exchange rate fell below the 1,470 won level during intraday trading for the first time in six sessions.

As of 09:19 on the 24th in the Seoul foreign exchange market, the dollar-won was trading at 1,471.40 won, down 4.20 won from the previous session.

The session opened at 1,472.00 won, a decrease of 3.60 won from the previous close.

Early in the session, the greenback slipped below the 1,470 won threshold before fluctuating within a narrow range.

The intraday low immediately after the open was 1,468.70 won.

Renewed expectations for a rate cut by the US Federal Open Market Committee (FOMC) have put downward pressure on the dollar.

Market consensus is that the Bank of Korea’s Monetary Policy Board, meeting later this week, will keep its policy rate unchanged.

Given the sharp rise in the dollar-won rate in recent sessions, vigilance over potential intervention by authorities has increased.

The halt in the KOSPI’s decline and a modest rebound in the index also contributed to the downward movement in the dollar-won rate.

“It seems most expect the exchange rate to move lower,” said a foreign exchange dealer at a local bank. “There was talk of a Bank of Japan (BOJ) rate hike over the weekend, and technically, the exchange rate remains at elevated levels.”

The US Dollar Index rose to 100.29.

At the same time, the dollar-yen rate was up 0.35 yen at 156.72 yen, while the euro-dollar rate slipped 0.001 to 1.1500.

The yen-won cross rate stood at 938.62 won per 100 yen, and the yuan-won rate was 207.09 won.

South Korea’s benchmark KOSPI index rose 0.4%, with foreign investors net buying 37.6 billion won ($28.5 million) worth of shares on the main board.

The offshore dollar-yuan (CNH) rate fell to 7.1040 yuan.

syjung@yna.co.kr

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