Seoul: Won marks fastest daily gain vs dollar since 2009

THE South Korean won closed 4.5 per cent firmer in onshore trade on Friday (Nov 11), its biggest daily gain since April 2009, as the dollar saw its worst day since 2009 on US inflation report. South Korean shares surged, while the benchmark bond yield fell.

The benchmark Kospi ended 80.93 points or 3.37 per cent higher at 2,483.16, the fastest daily gain since Feb 25, 2021. For the week, the index jumped 5.74 per cent, the sharpest weekly gain since January 2021.

A cooler-than-expected US inflation on Thursday data sparked hopes that the Federal Reserve could tone down its aggressive interest rate hikes. The US consumer price index had been 7.7 per cent higher in October than a year earlier.

As the pace of won’s weakening against the dollar from 1,350 level to 1,450 level was fast without much resistance, the reversal into won’s gain was also inevitably fast, especially as the pace of won’s depreciation during September was relatively excessive, said a currency analyst in Seoul.

South Korea’s finance minister said on Friday the government was preparing further steps aimed at boosting dollar supply on the foreign exchange market.

Among heavyweights, technology giant Samsung Electronics rose 4.14 per cent and peer SK Hynix gained 4.94 per cent, while battery maker LG Energy Solution advanced 3.14 per cent.

The trading volume was 748.34 million shares. Of the total traded issues of 930, the number of advancing shares was 783.

Foreigners were net buyers of shares worth 690.2 billion won (S$719.9 million) on the main board.

The won was quoted at 1,318.4 per dollar on the onshore settlement platform, 4.48 per cent higher than its previous close at 1,377.5.

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The Kospi has fallen 16.61 per cent so far this year, but gained 8 per cent in the previous 30 trading sessions.

The won has lost 9.8 per cent against the dollar so far this year. REUTERS