The won-dollar exchange rate fluctuated sharply throughout the day, closing at 1,330.7 won. The intraday high-low spread reached 9.6 won, while concerns about Japanese intervention weighed on the dollar.
In Seoul foreign exchange trading on the 12th, the won-dollar exchange rate ended the day's trading at 1,330.7 won, down 2.9 won from the previous business day. It opened at 1,336.4 won, 1.1 won below the previous day's close, and fell to 1,331.5 won in the morning on selling, before rebounding on dip-buying.
In the afternoon, the market fluctuated again, falling to an intraday low of 1,327.7 won at 2:24 p.m. The spread between the intraday high and low reached 9.6 won. Dip-buying emerged again when the rate fell below 1,330 won, and it eventually recovered to the 1,330 range before closing.
Movements in the yen became a factor influencing the dollar exchange rate. Concerns about intervention by the Japanese authorities encouraged yen depreciation while restraining the dollar's overall rise. Expectations for monetary tightening by the US Federal Reserve remained strong, and the dollar index stood at a high level of 102.95 at the New York close. Foreign capital flows continued to shift daily, with equities recording net outflows while bonds turned to net inflows.
This week, the market is expected to continue fluctuating around 1,330 won, with no clear direction amid external factors affecting the yen and dollar. Views are spreading that movements in the yen, the intensity of verbal intervention by the Japanese authorities, and the shift to inflows of bond funds will determine short-term trends.