"Exchange Rate Drops Amid Foreign Stock Purchases: Down 4.8 Won to 1,388.2 Won"

2025-07-21 16:17
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"Exchange Rate Drops Amid Foreign Stock Purchases: Down 4.8 Won to 1,388.2 Won"

출처: Block Media

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South Korean Won Weakens Against U.S. Dollar Amid Increased Foreign Stock Investments

[Seoul—Yonhap News, by Min Sun-hee] The South Korean won experienced a decline against the U.S. dollar on October 21, largely influenced by foreign investors’ heightened stock purchasing activity in the domestic market.

At the close of trading at 3:30 PM on the Seoul foreign exchange market, the South Korean won ended the week at 1,388.2 per dollar, registering a drop of 4.8 won compared to the previous session.

The won opened slightly weaker, slipping by 0.9 won to begin the day at 1,392.1 per dollar. While it traded in the 1,390 range earlier in the session, the local currency strengthened later, briefly dipping into the 1,380 range.

The ongoing foreign buying spree in South Korea’s stock market applied downward pressure on the exchange rate.

KOSPI Records Gains on Robust Foreign Investment

KOSPI, South Korea’s leading stock index, closed the day at 3,210.81, reflecting a rise of 22.74 points (0.71%) compared to the previous session's close. Foreign investors actively purchased approximately 893.4 billion won (around $671 million) worth of Korean stocks during trading hours, which played a pivotal role in supporting the strength of the South Korean currency.

Despite heightened caution in the market as the exchange rate approached the 1,390 range, the global value of the U.S. dollar declined slightly.

The U.S. Dollar Index, an indicator that assesses the dollar’s strength relative to six key global currencies, dropped 0.24% from the previous trading session, closing at 98.306.

Japanese Yen Strengthens Despite Political Uncertainty

In Japan, the yen appreciated even as political uncertainty loomed following the ruling party’s failure to secure a majority in the House of Councillors election held on October 20. Analysts suggest that the election results were already factored into the market expectations, minimizing their immediate influence on trading behavior.

At 3:30 PM, the won-yen exchange rate rose to 937.94 won per 100 yen, marking an increase of 1.56 won compared to the prior trading session’s close of 936.38 won.

The yen also saw gains against the U.S. dollar. The exchange rate between the yen and the greenback fell 0.53%, with the yen trading at 147.98 per dollar by day's end.


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