The soaring KRW/USD exchange rate and the impact of 24-hour foreign exchange trading

While the wondollar exchange rate remains in the 1,500won range, the market continues to analyze the background of the exchange rate increase and its future trend. The average exchange rate in the second quarter of this year was 1,501.64 won, surpassing 1,500 won on a quarterly average for the first time since the 1998 foreign exchange crisis. Experts see the largescale selling of domestic stocks by foreign investors, the stronger dollar, and correlation with the yen's weakness as major factors behind the sharp rise in the exchange rate. However, there is also a view that if strong semiconductor exports and expectations of improved corporate earnings continue, foreign buying could recover and affect the won's trajectory. Starting on the 6th, the foreign exchange market will expand to 24 hours. While there are hopes that the longer trading hours, which were previously restricted, will allow global issues to be reflected more quickly, concerns are also being raised that shortterm volatility could increase during the lowvolume nighttime hours. In the medium to long term, analysis suggests that improved market accessibility could help stabilize the exchange rate.