A digital screen in Hana Bank's trading room in central Seoul shows the local currency closing at 1,145 won against the dollar, up 6.9 won from the previous session's close. The won to dollar exchange rate was the highest since October 12, 2020.
With the growing fear of inflation, wealthy people are rushing into safe haven assets — gold and the dollar.
According to data from the Bank of Korea, foreign exchange reserves came to $456.46 billion as of the end of May, up $4.15 billion from a month earlier.
Major Korean financial holding firm Shinhan Financial Group said Thursday it has raised $500 million by selling U.S. dollar-denominated notes.
According to the Bank of Korea (BOK), Korea's foreign exchange reserve at the end of April was $452.3 billion, up $6.2 billion on month. This is also higher than the record of $448 billion at the end of February.
Stocks retreated Wednesday on the increase in the value of the U.S. currency and the valuation pressure of local stocks. The won rose against the dollar.
Foreign currency deposits at banks in Korea rose in February, mainly due to a gain in corporate holdings of dollar deposits, central bank data showed Tuesday.
Brokerage and insurer dollar deposits are being monitored with extra vigilance as the multi-trillion-dollar economic stimulus packages planned by the Joe Biden administration threaten to flood foreign exchange markets.
Stocks tumbled by more than 1.6 percent on Tuesday, putting an end to a five-session winning streak on renewed concerns about the coronavirus. The Korean won fell against the U.S. dollar for the first time in six trading days.
The depreciation of the U.S. dollar is raising red flags at companies that export.