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The won-dollar exchange rate exceeded 1,540 won during daytime trading on the 5th as foreign investors sold off domestic stocks.
On Seoul's foreign exchange market that day, the won-dollar rate traded at 1,541.9 won, up 12.2 won from the previous day's daytime close. This marked the highest level since March 10, 2009 (1,561 won intraday) during the financial crisis.
The rate opened at 1,529 won, down 0.7 won from the previous day's daytime close, but rose sharply to break past 1,540 won as foreigners dumped shares on the domestic stock market. Foreigners are currently net-selling about 1.5 trillion won on the securities market. As the KOSPI index fell more than 6% to near the 8,000 level, the Korea Exchange triggered a sell-side sidecar.
Recently, the exchange rate's ceiling has been broken by various negative factors, including the Middle East situation, foreign capital outflows, expectations of U.S. tariffs and rate hikes, and the weak yen. After the previous day's daytime trading ended, the rate rose to 1,540.3 won in the overnight session, reaching its highest level since the 2009 financial crisis. The overnight close (2 a.m.) ended at 1,532 won, but the rate again surged as soon as daytime trading opened.
Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol said at an emergency economic headquarters meeting and meeting of economy-related ministers, which he chaired at the Seoul Government Complex that morning, "We are responding with particular vigilance to the expanding volatility in financial and foreign exchange markets."
