Won-Dollar Exchange Rate Drops to 1350 Won, Average Forecast for Q4 at 1380 Won

The won-dollar exchange rate has fallen to the 1350 won level for the first time in 1 year and 2 months, impacting the won-denominated prices for cryptocurrency investors. NH Investment & Securities analyzed that the increase in dollar sales by exporting companies is the main reason for the decline in the exchange rate. The previous day's exchange rate dropped to as low as 1350 won during trading, marking the lowest point of the year, and NH Investment & Securities expects the average exchange rate for the fourth quarter to be 1380 won. Researcher Kwon Ah-min explained that the influx of dollars earned by companies from strong exports has increased the supply of dollars in the foreign exchange market as they convert their earnings into won. The inflow of funds related to SK Hynix's ADR and the expansion of shareholder returns by semiconductor companies were also identified as factors contributing to the decline in the exchange rate. Researcher Kwon stated that the supply of dollars from companies has become prominent, shifting the short-term supply-demand balance in favor of supply. The reduction in the scale of foreign selling of domestic stocks has weakened the upward pressure on the exchange rate, and the government's commitment to stabilizing the exchange rate supports the strength of the won. The direct background for the decline in the exchange rate includes the dollar sales volume from exporting companies and the weakness of the dollar. NH Investment & Securities predicts that steady dollar demand from U.S. stock investors and foreign direct investment (FDI) will support the lower end of the exchange rate.

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