Lead
The South Korean won strengthened sharply against the U.S. dollar on Friday, buoyed by weaker-than-expected U.S. employment growth that dampened expectations of a Federal Reserve rate hike this year, Yonhap News Agency reported. The Korean currency closed at 1,525.6 won per dollar at 3:30 p.m., up 30.2 won from the previous session, marking its strongest level since June 17.
Coverage comparison
Two dispatches from Yonhap News — English provided slightly different details on the won's trading range. The earlier report noted that the won opened at 1,544.5 won per dollar, up 11.3 won from the previous session, and that it had weakened by 2.9 won to 1,545.4 won to the greenback at one point in morning trading. A later update confirmed the opening level but focused on the closing rate of 1,525.6 won, a gain of 30.2 won from the previous session. Both reports attributed the won's appreciation to softer U.S. jobs data and to the strengthening of the Japanese yen against the dollar.
The two reports differed on the market context. The earlier dispatch noted that the won had been under "constant pressure" over expectations of a Fed rate hike, while the later update mentioned that foreign investors continued to offload local stocks. The update also provided Thursday's onshore closing rate of 1,555.8 won per dollar, noting that the exchange rate had remained at the 1,550 level for a second consecutive day—a detail absent from the earlier article.
Key claims
- The South Korean won strengthened against the U.S. dollar on Friday, closing at 1,525.6 won per dollar at 3:30 p.m., up 30.2 won from the previous session. (Yonhap News — English)
- The won opened at 1,544.5 won per dollar, up 11.3 won from the previous session. (Yonhap News — English)
- The won's rise was helped by the strengthening of the Japanese currency vis-à-vis the dollar, analysts said. (Yonhap News — English)
- Foreign investors sold a net 2.2 trillion won (US$1.4 billion) worth of local stocks on Friday. (Yonhap News — English)
- The benchmark Korea Composite Stock Price Index jumped nearly 6 percent to close at 8,088.34. (Yonhap News — English)
- At one point in morning trading, the won fell 2.9 won to 1,545.4 won to the greenback. (Yonhap News — English)
Market reaction
Beyond the currency move, the stock market rallied strongly. The Korea Composite Stock Price Index jumped nearly 6 percent to close at 8,088.34, according to Yonhap. Foreign investors, however, remained net sellers, offloading a net 2.2 trillion won worth of local shares on Friday.
Analysts cited the yen's strength as an additional factor supporting the won. The dollar's decline against the yen helped the Korean currency firm up, Yonhap reported.