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According to Seoul Foreign Exchange Brokerage, the won-dollar exchange rate is trading at 1119.05 won, up 0.25 won (0.02%) from the previous trading day at 9:18 am on the day.
The exchange rate on this day has risen and fluctuated from the 1119 won level since opening at 1119.50 won, up 0.70 won (0.06%) from the closing price of the previous trading day (1118.80 won). Immediately after opening, it rose to 1,120 won, but the increase in the export company’s Nego volume decreased.
The dollar index, which represents the value of the dollar against the currencies of six major countries, is also fluctuating at the 90.6 line. The dollar index has risen 0.10% from the closing price of the previous trading day to 90.63 won, and is showing a consolidation movement. On the 29th (local time), the New York Stock Market fell 2% in all three indexes. The Dow Jones 30 industry average index fell 2.03% compared to the previous trading day to 29,862.62, the largest drop in three months. The Standard & Poor’s (S&P) 500 Index and the Nasdaq Index also fell 1.93% and 2.00% to 3714.24 and 13,070.69, respectively. The third clinical trial of the US pharmaceutical company Johnson & Johnson’s COVID-19 vaccine showed an average of 66% preventive effect, and the clinical trial results that did not meet expectations were also adverse.
The reason why the New York Stock Market fell and the dollar, which is a safe asset, was strong is because the financial market anxiety that started at Game Stop is amplifying. The majority of hedge funds are losing money as US individual investors contend with short selling forces and intensively buy Gamestops and raise stock prices. In fact, it is known that the assets of Melvin Capital, a short-selling hedge fund, were cut in half. Hedge funds that suffered losses were more likely to sell other stocks to make up for the losses, raising concerns that the stock price would fall. While Robin Hood, a free stock app in the US, eased trading restrictions in one day, short squeezes for some stocks, such as Game Stop, revived. Gamestop’s share price surged 67.9%, making up for the sharp decline (-44.3%) on the previous trading day. Gamestop’s stock price jumped 1625% in January alone.
The domestic stock market was also affected by volatility that spread across the financial market and started from a consolidation zone. On this day, the KOSPI index opened the market at 2976.81, up 0.6 points (0.02%) from the previous trading day. Institutions are making a net purchase of 500 million won, showing an advantage in buying and falling from the 2980 line. Foreigners are showing a net selling tax of about 22 billion won.
So Byung-eun, a researcher at NH Futures, said, “We expect an upward advantage in the possibility of inflow of reverse remittances due to the strong global dollar and net selling of foreign stock markets due to the recent plunge in the New York stock market. I think it will fluctuate in the ~1122.00 won range.”