[외환-마감] Explosion in the stock purchase of outsiders narrows the rise… 1,089.80 won 2.50 won↑ (Total)

[한국금융신문 이성규 기자] The dollar/won exchange rate plunged to the level of the high end of the 1,080 won level after a large amount of intraday gains were returned due to the explosion of foreign stock net buying and the surge in the KOSPI index.

On the 8th in the Seoul foreign exchange market, the dollar/won exchange rate ended at 1,089.80 won, up 2.50 won from the previous trading day. It is an increase for two consecutive days.

On this day, the dollar/won exchange rate showed a sharp rise during the intraday.

The strong dollar pushed the dollar/won upward despite the strong US economic indicators and the blue wave (the Democratic Party’s simultaneous control of the White House and Congress) strengthened the preference for risky assets in the asset market.

The strength of the dollar continued last night in the Asian market in the New York foreign exchange market, and participants in and outside the region hurried to short cover and bet on a dollar/won rise.

The dollar index once broke through the 90 line, and the dollar/won also soared to 1,098.90 won by soaring more than one big (10 won).

However, in the afternoon, as the KOSPI index once surged by more than 4% and the net purchase of foreign stocks exceeded KRW 1 trillion, the long-minded market gradually retreated, and the short cover of market participants contracted, and the dollar/won rate quickly decreased. .

In the process, the strength of the dollar has slowed somewhat.

At the close of the Seoul exchange rate, the dollar/yuan exchange rate in the offshore market stood at 6.4610 yuan, and the dollar index rose 0.01% to 89.83.

Foreign stock investors net bought stocks worth KRW 1.64 trillion in the KOSPI market alone, and net sold shares worth 17.9 billion won in the KOSDAQ market.

The KOSPI index broke the 3,100 line for the first time in history and ended at 3,152.18, up 120.50 points (3.97%) compared to the previous trading day.

■ Long-minded retreat by buying wide stocks from outsiders
On this day, the strong dollar triggered unexpectedly strong US economic indicators and profit-taking sales against the euro.

For this reason, domestic and foreign participants, who had established short positions expected from the weakness of the dollar due to the Blue Wave, pushed for a rise in the dollar/won as they came to short cover all at once.

In addition, as importers, with an additional increase in the dollar/won in mind, also introduced payment demand, the supply and demand of Seoul exchanged demand sloping to the dominant demand.

However, as the net buying of foreign stocks raged, the long-mindedness of market participants fell sharply in the latter half of the market.

A dealer of Bank A said, “Unlike market expectations, Blue Wave did not instigate a weak dollar, and rather, it led to a strong market in the global stock market as well as in Korea.” He diagnosed that it is more likely that the dollar/won’s bullish momentum will be weakened as he is poised to wipe out.

■ 11th forecast… “It depends on the people outside the stock market”
The dollar/won exchange rate on the 11th is expected to be trapped in the flow of the box again at the 1,080 won range.

Next week’s dollar/won will be affected by the dollar flow and the US stock market movements, but experts generally say that the direction is highly likely to be determined by the actions of foreign investors returning to the Korean stock market.

If foreign investors continue to buy broad stocks, the possibility that the dollar/won will drop to the mid-1,180 level level is also expected to remain open.

In addition, if market participants in and outside the region, who were short on the strength of the dollar, reestablish their short positions, the drop in the dollar/won could further increase.

A dealer of Bank B said, “The weakening trend of the dollar with Blue Wave will eventually find its place in the market, and in this situation, if even the market supply and demand is inclined to a supply advantage due to the net purchase of foreign domestic stocks, the rate of decline in the dollar/won may come out steeply “The environment will be created.”

Reporter Lee Seong-gyu [email protected]