U.S. Dollar Falls against the Korean Won – Yet Again

The U.S. dollar fell against the Korean won.

On November 16, the dollar fell 1.70 won and closed at 1090.30 on the foreign exchange market in Seoul, the lowest level since November 24, 1997 when it traded at 1,085 won.

The dollar-won exchange rate gyrated between 1089.3 and 1097.8.

“Local exporters sold dollars massively. Offshore investors bought them,” said Roh Sang-chil, the exchange team leader at Star KB. “There was no government intervention in the market.”

Offshore purchases appeared to be triggered as U.S. Treasury Secretary John Snow has expressed support for a strong dollar and as White House National Security Advisor Condoleeza Rice, a conservative on Korean issues, has been tapped to be the next secretary of state.

The Kospi index closed at 876.61, down by 5.72.

Cheol-Yong Lee lcy@donga.com