Key facts
- The South Korean won reached a fresh 11-month high against the U.S. dollar.
- The won was trading at 1,392.6 won per dollar.
- Dollar selling by exporters contributed to the won's strength.
- The U.S. dollar weakened due to the Treasury Department's increased purchases of long-dated bonds.
- Foreign investors were net buyers of South Korean stocks.
The South Korean won reached a fresh 11-month high against the U.S. dollar on Thursday, driven by increased dollar selling from exporters and a general weakening of the dollar. The dollar's decline was attributed to the U.S. Treasury Department's move to calm a surge in long-term bond yields by doubling its planned purchases of long-dated bonds.
At 3:30 p.m., the won was quoted at 1,392.6 won per dollar, marking a 5.1 won increase from the previous trading day's close. Earlier in the session, the won opened at 1,387 won and climbed as high as 1,384.1 won, its strongest level since September 18 of the previous year.
In addition to exporter activity, the won's advance was supported by the dollar's broader weakness. Foreign investors contributed to the positive sentiment by purchasing a net 1.7 trillion won (US$1.23 billion) worth of local stocks. This influx of foreign capital coincided with a significant rally in the benchmark Korea Composite Stock Price Index (KOSPI), which jumped 5.89 percent to close at 6,852.58.