The Korean won fell to the 1,333-won-per-dollar range intraday, recording its lowest level in around two years. Dollar selling increased against a backdrop of strong exports, and the foreign exchange market reacted sensitively amid thin trading.
The Korean won fell to 1,333.20 won in intraday trading on the 12th, reaching its lowest level in around two years. Trading was thin because the US and Japanese markets were closed, and the exchange rate moved sharply even on small amounts of trading. The won ended afternoon trading at 1,335.1 per dollar, down 7.7 won from the previous day.
According to provisional figures from the Korea Customs Service, exports from the 1st to the 10th of this month totaled $26.1 billion, up 102.0% year on year and the largest amount on record for the same period. Average daily exports reached a record $4.75 billion. In particular, increased semiconductor exports supported dollar selling.
The exchange rate fell even as foreign investors continued to be net sellers of Korean equities. While both the KOSPI and KOSDAQ declined, supply and demand for dollar selling prevailed, resulting in a divergence between movements in the exchange rate and stock prices.
Market participants said that weak buy orders, despite limited negotiated volume amid thin trading, had caused the exchange rate to fall. The dollar index stood at 102.18, while the won-yen cross fell to 843.07 won per ¥100.
Overall, dollar selling driven by strong exports continued to push the market lower, and the thin supply-demand balance was cited as a factor that could increase short-term volatility.