S. Korean won marginally rises against U.S. dollar

Lead

The South Korean won has continued its gradual ascent against the U.S. dollar, extending gains in recent sessions as exporters sold dollars and global oil prices fluctuated. According to Yonhap News Agency, the won was quoted at 1,423.8 won per dollar on Thursday, up 0.7 won from the previous day's close, after hitting an intraday 10-month high. A week later, the won rose marginally by 0.3 won to 1,415.7 won, holding firm around the 1,410 level, the strongest since early October last year.

Coverage Comparison

Two separate reports from Yonhap News Agency, dated August 6 and August 12, provide a snapshot of the won's performance over consecutive weeks. The first report highlighted the won's appreciation amid falling oil prices, while the second noted only a marginal rise, with traders awaiting U.S. inflation data. Both reports emphasize exporter selling of dollars as a key factor, but the later report introduces a note of caution, attributing limited gains to continued military tension between the United States and Iran and little headway in reopening the Strait of Hormuz.

Key Claims

The won extended its gains, hitting an intraday 10-month high on August 6, reaching 1,414.5 won in morning trading, the strongest since October 2 of the previous year. It closed at 1,423.8 won per dollar, up 0.7 won.

Global oil prices fell as Iran reportedly agreed with Oman on a route to help restore shipping traffic through the Strait of Hormuz. This development supported the won's appreciation, as did the confirmed joint market intervention by the United States and Japan last week.

During the latest trading session, foreigners sold a net 3.3 trillion won (US$2.3 billion) worth of local stocks, and the benchmark Korea Composite Stock Price Index tumbled 4.58 percent to close at 6,296.38.

By August 12, the won had risen marginally, quoted at 1,415.7 won per dollar at 3:30 p.m., up 0.3 won from the previous day. Exporters continued to sell dollars, and traders were awaiting U.S. inflation data. The won's appreciation was limited, however, due to continued military tension between the United States and Iran, with little progress reported in reopening the Strait of Hormuz.

Foreigners bought a net 2.8 trillion won (US$1.9 billion) worth of local stocks, and the KOSPI jumped 3.68 percent to close at 6,579.04, a sharp reversal from the previous week's decline.

Additional claims from the reports include the won opening at 1,423 won per dollar on August 6, and at 1,424 won per dollar on a later date, rising to 1,415.9 won in afternoon trading. Exporters were also noted to have sold dollars in that session. Global oil prices rose in one account as Iran reportedly said it would ban U.S., Israeli and other ships deemed hostile from the Strait of Hormuz in a proposed deal with Oman. In that session, foreigners sold a net 858.1 billion won (US$606 million) worth of local stocks, and the KOSPI fell 0.6 percent to close at 6,258.77.