The foreign exchange market is also unstable in the KOSPI that collapsed at the 3000 line Foreign exchange dealers pay attention to foreigner net selling due to fluctuating exchange rates

As the domestic stock market plummeted, the KOSPI index again fell below the 3000 line, and the foreign exchange market is also showing an unstable appearance. The overall risk-off atmosphere and the trend of foreign investors leading the index decline with massive net selling this week in the domestic stock market are also causing the foreign exchange market to fluctuate.

The KOSPI index closed at 2976.21 points, down 3.03% (92.84 points) on the 29th. After rising above the 3200 line this Monday, it fell for four days in a row, ending below 3,000 points for the first time since January 6 (closed price 2968.21). In particular, after the Fed’s Open Market Committee (FOMC) meeting yesterday, the atmosphere of hedging in the international financial markets has strengthened. In China, interest rates between Shanghai banks are soaring, which is also fueling a hedging atmosphere. In 2016, as the Shibor interest rate rose, the domestic stock market was depressed, and the market has even reported a crisis in February.

The won-dollar exchange rate surged 15.2 won in the Seoul foreign exchange market yesterday, and traded at the mid-1110 won level after starting a decline on that day, ending at 1118.8 won with a rebound in the second half of the market.

The foreign exchange market is paying particular attention to the foreign trend in the domestic stock market. This is because they have net sold the domestic stock market for four consecutive days since Tuesday this week, and the aftermath is still being transmitted to the foreign exchange market. Foreigners’ demand for remittances back to their home country after selling domestic stocks is a factor in buying dollars, which increases the won-dollar exchange rate.

Foreigners recorded net sales of about 3 trillion won in the domestic stock market for two days yesterday and today. If the scope is expanded throughout this week, the net selling scale will increase to over 5 trillion won.

A foreign exchange dealer of a foreign bank said, “Although the KOSPI index is also, the net selling of foreigners is exerting strong upward pressure on the exchange rate both in terms of supply and demand and psychologically.” The atmosphere was strong, but now I think I have to think again.”