The USD-KRW exchange rate rose 4.70 won to 1,530.30 won as of 3:30 PM in the Seoul foreign exchange market on the 6th, driven by a stronger dollar and foreign investor stock selling. The currency pair opened at 1,527.60 won at 6 AM, marking Seoul's first 24-hour trading session, then climbed to an intraday high of 1,537.50 won before retreating to 1,526.70 won and stabilizing around the 1,530 won level. The upward pressure came from a rising dollar index above 101 and USD-JPY returning to the 162 yen range despite intervention concerns from Japanese authorities. Foreign investors extended their selling streak to 12 consecutive trading days, offloading 1.3 trillion won in the main stock market and over 1.9 trillion won across all markets including KOSDAQ and NEXTTRADE, fueling custody demand for dollars. The session also saw a technical rebound following a sharp drop on the 3rd attributed to smoothing operations.
USD-KRW Opens 24-Hour Trading at 1,527.60 Won
The USD-KRW exchange rate began trading at 1,527.60 won at 6 AM on the 6th, 2.00 won higher than the previous Seoul session close, as the market launched its first 24-hour trading day. The pair expanded gains from around 9 AM, the traditional opening time, reaching 1,537.50 won before giving back most gains to touch 1,526.70 won, then moving back to the low 1,530 won range. The dollar's strength underpinned the exchange rate, with the dollar index rising above 101 and USD-JPY climbing back to the 162 yen level despite vigilance over potential intervention by Japanese forex authorities. The intraday range spanned 10.80 won between the high of 1,537.50 won and low of 1,526.70 won. Spot trading volume reached $10.866 billion across Seoul Foreign Exchange Brokers and Korea Money Brokerage.
Foreign Investors Sell 1.3 Trillion Won in Stocks
Foreign investors net sold 1.3 trillion won in the main stock market on the 6th, marking the 12th consecutive trading day of selling. Including KOSDAQ and NEXTTRADE transactions, total net selling exceeded 1.9 trillion won, a move that triggered custody buying demand for dollars. The KOSPI closed down 0.46% at 8,051.33, while the KOSDAQ fell 2.46% to 847.07. The sustained foreign outflows provided upward momentum for the USD-KRW rate throughout the session.
Deputy PM Koo Emphasizes Market Stability
Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul visited the Hana Bank headquarters dealing room on the morning of the 6th, stating that the 24-hour forex market opening is core infrastructure to achieve advanced-market-level accessibility and convenience and serves as a starting point for the won's global leap. Koo said market stability and system settlement are the most important tasks, pledging 24-hour monitoring without gaps and support for smooth round-the-clock trading, as well as the implementation of an offshore won settlement system enabling 24-hour payment and fund transfers. In the currency futures market, foreign investors net bought 12,000 dollar futures contracts. The People's Bank of China set the USD-CNY trading reference rate at 6.8066 yuan, up 0.0019 yuan (0.03%) from the previous session.
Dealers Cite SK Hynix ADR and Authority Vigilance
Market participants noted that upside attempts were limited by authority vigilance and exporter hedging flows, with potential dollar inflows from SK Hynix's American Depositary Receipt listing also restraining buying bets. One bank dealer said actual inflows from SK Hynix's ADR fundraising must be observed, noting that if related supply materializes, the exchange rate could stabilize downward. The dealer added that unfulfilled buying demand exists due to high end-of-half-year rates, and the 1,530 won level is expected to provide support until ADR inflows arrive, with direction subject to US-Iran developments and economic indicators. Another dealer reported that foreign stock net selling below 2 trillion won appears to balance supply and demand, and that USD-KRW feels heavy compared to USD-JPY gains, with limited custody demand and strong authority intent amid expectations of SK Hynix supply. As of 3:30 PM, USD-JPY stood at 162.169 yen, JPY-KRW at 944.06 won per 100 yen, EUR-USD at 1.14233 dollars, the dollar index at 101.031, and offshore USD-CNH at 6.7928 yuan. The direct CNY-KRW rate closed at 225.28 won per yuan, with an intraday low of 225.08 won and high of 226.62 won. The market average rate is scheduled to be announced at 1,531.80 won. The US June ISM Services PMI is due for release, and Federal Reserve Governor Christopher Waller is scheduled to speak publicly.
FAQ
What happened to USD-KRW on the 6th during Seoul's first 24-hour trading session?
USD-KRW rose 4.70 won to 1,530.30 won as of 3:30 PM on the 6th in Seoul's inaugural 24-hour trading session, opening at 1,527.60 won at 6 AM and reaching an intraday high of 1,537.50 won before retreating to stabilize around 1,530 won.
Why did the USD-KRW exchange rate rise on the 6th?
The exchange rate rose due to a stronger dollar, with the dollar index climbing above 101 and USD-JPY returning to the 162 yen range, combined with foreign investors net selling 1.3 trillion won in the main stock market and over 1.9 trillion won across all markets, triggering custody dollar demand.
What did Deputy PM Koo say about the 24-hour forex market launch?
Deputy Prime Minister Koo Yoon-chul stated during a visit to Hana Bank's dealing room on the morning of the 6th that the 24-hour forex market opening is core infrastructure for advanced-market-level accessibility and a starting point for the won's global leap, emphasizing that market stability and system settlement are top priorities with 24-hour monitoring and support measures to follow.
