A Rapid Rise in Exchange Rate: 1,307 Won against the U.S. Dollar

Since the terrorist attacks on the U.S., the won-dollar exchange rate has continued to increase. For there exists increasing anxiety caused by the United States possible retaliatory strikes, and foreign investors are selling stocks and buying dollars. On Sept. 24, the won-dollar exchange rate ended up at 1307.2 won, 7.2 won higher than last weekend. This is the highest rate in two months since July 25 (1308.8won). The exchange rate started from 1303.0 won and increased immediately up to 1308.3 won. But later, the exchange profit sales and negotiation-offerings before the end of month stunted the increase. The won-yen exchange rate marked 1120.0 won, 10 won increase per 100 yen.

Consequently, the won-dollar exchange rate has increased 25.5 won in comparison with that before the terror (1282.0 won). Such a rapid increase in the exchange rates resulted from the influences of the last weekend`s NDF market, in which the won-dollar exchange rate once reached 1312.0 won and then ended up in the 1308s.

Yoo Jung-Hyun, a exchange dealer of Korean Exchange Bank, said ``the increase of the exchange rates was influenced by the last weekend`s NDF market where foreign investors sold 100 billion won worth of stocks and bought dollar.`` and forecasted that ``the increase of the exchange rates will continue because the foreign investors sold 71.8 billion worth of stocks on Sept. 24, and there prevails in the market an anxiety about retaliatory strikes.``

hcs@donga.com