Market data is displayed on an electronic board at the Hana Bank dealing room in Jung-gu, Seoul, on the morning of the 19th. News1
The Korean won weakened against the U.S. dollar Wednesday, pressured by broad dollar strength and net selling of Korean stocks by foreign investors. The exchange rate touched the 1,509 won level intraday as risk-off sentiment intensified amid surging oil prices driven by Middle East tensions.
The won-dollar rate closed daytime trading at 1,507.8 won on Sept. 19, up 7.5 won from the previous session. On a closing basis, it marked the highest level since April 2, when the rate had finished at 1,519.7 won.
The exchange rate came under upward pressure amid a broader rally in the dollar. With West Texas Intermediate (WTI) crude oil prices climbing above $100 per barrel, inflation concerns mounted and the move away from risk assets accelerated.
In the domestic stock market, a correction centered on semiconductor stocks continued, while net selling by foreign investors added to the upward pressure on the exchange rate. The rate climbed to an intraday high of 1,509.4 won.
Meanwhile, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol met with senior executives of global financial institutions in London on Sept. 18 (local time) to brief them on the Korean economy and plans to advance the country’s capital markets, working to secure the confidence of overseas investors.
In a meeting with George Elhedery, CEO of HSBC, Koo introduced foreign exchange market reform initiatives, including extending FX trading hours to 24 hours and establishing an offshore won settlement system, and called for active participation and cooperation from global financial institutions. Elhedery said the openness and international connectivity of Korea’s financial market is strengthening, and pledged to expand cooperation in AI infrastructure, energy transition, and advanced industries.
In a subsequent meeting with Richard Oldfield, CEO of Schroders, Koo explained the achievements of foreign exchange and capital market reforms and the upward trajectory of the KOSPI, requesting continued interest and investment in the Korean market. According to the Ministry of Economy and Finance, Oldfield offered a positive assessment of the Korean government’s efforts to improve corporate governance and expand shareholder returns, and highly praised its determination to resolve the “Korea discount.”
The Korean won closed at 1,507.8 won per dollar on Sept. 19, up 7.5 won and the highest close since April 2, as foreign investors sold Korean stocks and WTI crude topped $100 per barrel. The rate touched 1,509.4 won intraday amid global dollar strength and risk-off sentiment.
– The won-dollar exchange rate closed at 1,507.8 won on Sept. 19, marking the highest closing level since April 2, when it finished at 1,519.7 won.
– West Texas Intermediate crude oil prices climbing above $100 per barrel fueled inflation concerns and accelerated the flight from risk assets.
– Foreign investors’ net selling of Korean stocks, particularly in the semiconductor sector, contributed to the won’s depreciation, pushing the rate to an intraday high of 1,509.4 won.
– Deputy Prime Minister Koo Yun-cheol met HSBC CEO George Elhedery in London on Sept. 18 to introduce FX market reforms, including 24-hour trading hours and an offshore won settlement system.
– Schroders CEO Richard Oldfield praised the Korean government’s efforts to improve corporate governance and resolve the “Korea discount,” according to the Ministry of Economy and Finance.
Q: How much did the won-dollar exchange rate rise on Sept. 19?
A: The won-dollar exchange rate closed daytime trading at 1,507.8 won on Sept. 19, up 7.5 won from the previous session. The rate touched an intraday high of 1,509.4 won. On a closing basis, this was the highest level since April 2, when the rate finished at 1,519.7 won.
Q: What factors drove the won’s weakness against the dollar?
A: Multiple factors contributed to the won’s depreciation. Global dollar strength applied broad upward pressure on the exchange rate, while WTI crude prices climbing above $100 per barrel raised inflation concerns and triggered risk-off sentiment. Net selling of Korean stocks by foreign investors, especially in semiconductors, added further pressure.
Q: What FX reforms did Deputy Prime Minister Koo discuss in London?
A: Deputy Prime Minister Koo Yun-cheol introduced foreign exchange market reform initiatives during his Sept. 18 meeting with HSBC CEO George Elhedery in London. These included extending FX trading hours to 24 hours and establishing an offshore won settlement system. Koo called for active participation and cooperation from global financial institutions.
Q: How did global financial executives respond to Korea’s reform efforts?
A: HSBC CEO George Elhedery said the openness and international connectivity of Korea’s financial market is strengthening and pledged expanded cooperation in AI infrastructure, energy transition, and advanced industries. Schroders CEO Richard Oldfield praised Korea’s corporate governance improvements and shareholder return efforts, highly evaluating the determination to resolve the “Korea discount.”
