Won-dollar exchange rate rises closer to annual peak

The won-dollar exchange rate inched higher on Tuesday morning, edging closer to its annual peak.

Dollar bills are stacked up inside a Hana Bank central Seoul branch on April 25. [NEWS1]

The won-dollar exchange rate inched higher on Tuesday morning, edging closer to its annual peak.

The won opened at 1,480.0 won against the U.S. dollar, down 0.1 won from the previous day’s close of 1,480.1, but has fluctuated in the 1,480-won range into the trading session.

As of 9:06 a.m., the won was trading at 1,482.3 won to the dollar, up 1.3 won from Monday’s closing price in daytime trading as of 3:30 p.m.

Both the opening price and intraday high marked the highest levels in over eight months since April 9, when the market opened at 1,484.0 won and peaked at 1,487.6 won. The closing price also hit the highest for this year on April 9 at 1,484.1 won.

Although foreign exchange authorities have expressed a strong commitment to stabilizing the won, market analysts say the recent rise is being driven by factors such as the yen’s ongoing weakness and demand from importers to settle payments.

Last week, the yen-dollar rate climbed to the upper 157-yen range, but has slightly retreated to the 156-yen range following intervention by Japanese authorities. The yen-dollar rate stood at 156.88 yen, down 0.2 yen, as of Tuesday.

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]