USD/KRW Rate Nears 1550 Won, Extends Gains for Fourth Day

The won-dollar exchange rate has drawn closer to the 1550 won mark, rising for the fourth consecutive day. In the Seoul foreign exchange market on the 25th, the won-dollar rate closed at 1544.40 won, up 0.90 won from the previous day. The rate opened at 1543.0 won and rose to 1548.9 won during trading hours, marking the first time it surpassed 1540 won in 13 trading days since August 8th.

A strong U.S. dollar and foreign investors' net selling of domestic stocks influenced the rise in the won-dollar exchange rate. The dollar strengthened due to prospects of monetary tightening by the U.S. Federal Reserve (Fed), while the continued net selling of domestic stocks by foreign investors led to a daily increase in the exchange rate. Foreign investors net sold 816.8 billion won worth of securities for five consecutive days on the stock market, impacting the exchange rate's upward trend.

SK Hynix's planned listing of its American Depositary Receipts (ADRs) on Nasdaq is also drawing attention as a factor in exchange rate fluctuations. SK Hynix plans to issue up to 17.79 million new shares through its Nasdaq listing on October 10th. If the funds raised are used for domestic semiconductor production facility investments, it could increase dollar supply in Korea, but a limited impact on the exchange rate's decline may occur if funds are reinvested locally.