Won-Dollar Exchange Rate Jump by 19 Won, Stock Price Up by 9.50 Points to 766

Due to the strong yen and government intervention, the won-dollar exchange rate has leaped by almost 20 won (meaning a lower value for won) and reached the 1160 level for the first time in 25 days. Stock prices have increased as well.

On October 14, the foreign exchange market in Seoul closed the day with the won-dollar rate of 1166.4 won per dollar, an increase of 19.2 won from the day before. The rate was the highest since September 22 when it fell below the 1160 level, and the increased rate was the highest daily gain since the won jumped 19.8 on March 10.

The jump in the won-dollar rate was due to the government’s intervention in the foreign exchange market by buying dollars, and because the yen-dollar rate that had been on a constant fall for a month since the middle of September has recently reversed its downward trend. At 4:30 p.m. on the same day, the yen-dollar rate was 109.65 yen rising by 0.66 yen than the day before at the Foreign Exchange Market in Tokyo.

Meanwhile at the stock market, the general stock price index closed at 766.52, an increase of 9.50 points (1.25%) from the day before due to the American stock market which closed the day before with a bullish tendency and also to foreign buyers’ increasing investments in the Korean stock market. The stock price index on the day had reached 772.29. This was the first time to hit the 770 mark since September 9 (775.88), and the closing price was the best since September 17 (766.59).

Joong-Hyun Park sanjuck@donga.com