USD-KRW Trades at 1,511.20 Won, First Drop Below 1,500 Since May 29

The USD-KRW exchange rate traded at 1,511.20 won at 8:47 PM on the 8th, down 17.00 won from the previous session in New York trading. The decline followed SK Hynix's forward exchange contract sales tied to anticipated ADR listing inflows, foreign investors' first net buying in 14 sessions, and estimated smoothing operations by authorities. The exchange rate marked its first drop below 1,500 won since May 29, when the regular session closed at 1,498.50 won, down 29.70 won.

Regular Session Closes at 1,498.50 Won

The USD-KRW exchange rate finished regular trading at 1,498.50 won on the 8th, down 29.70 won from the previous session. This represented the first time the rate fell below 1,500 won since May 29. Foreign investors turned to net buying during intraday trading after 14 consecutive sessions of selling domestic stocks.

USD-KRW exchange rate movement on the 8th. Source: Yonhap Infomax

SK Hynix Forex Sales and Foreign Buying Drive Decline

SK Hynix released forward exchange selling volume on the 8th amid expectations of fund inflows from its American Depositary Receipt (ADR) listing in the United States. Foreign exchange authorities' estimated smoothing operation volumes entered the market alongside long-stop (buy position liquidation) activities. These factors combined to exert downward pressure on the USD-KRW exchange rate during the session.

Trump Iran MOU Comment Reduces Late-Session Losses

The USD-KRW exchange rate reduced its decline after entering London trading hours. U.S. President Donald Trump's comment that the Memorandum of Understanding (MOU) signed to end the war with Iran "seems over" influenced the late-session movement. The June Federal Open Market Committee (FOMC) minutes were scheduled for release that night.

Dollar Index and Cross-Currency Rates

The dollar index traded at 101.173 at the same time. The USD-JPY exchange rate stood at 162.478 yen, up 0.005 yen from the previous session. The EUR-USD exchange rate traded at 1.14030 dollars, down 0.00003 dollars from the previous session. Offshore USD-CNY traded at 6.8054 yuan.

FAQ

What caused the USD-KRW exchange rate to fall below 1,500 won on the 8th?

SK Hynix's forward exchange contract sales tied to anticipated ADR listing inflows, foreign investors' first net buying in 14 sessions, and estimated smoothing operations by authorities drove the decline. The regular session closed at 1,498.50 won, down 29.70 won from the previous session.

When did the USD-KRW exchange rate last trade below 1,500 won before the 8th?

The USD-KRW exchange rate last fell below 1,500 won on May 29. The 8th marked the first time the rate dropped to the 1,400-won range since that date.