Korean Won Ends Week Steady at 1,343.6 Per Dollar

The Korean won ended the week at 1,343.6 won per dollar, marking a slight decline of 0.4 won (0.02%) from the previous session's close. This rate fell within market expectations of a mid-1,340-won range. The exchange rate opened at 1,342 won in the morning, peaking at 1,346.7 won before dropping to a low of 1,341.2 won and stabilizing between 1,342-1,345 won before the week's close.

The stability in the won-dollar rate is attributed to dollar sales by Korea's major export corporations. Despite the dollar's strength due to the Middle East war and rising government bond yields in major countries, these sales helped prevent significant volatility in the exchange rate.

The dollar index, measuring the dollar's value against six major currencies, stood at 102.26, up 0.15 points from the previous day. The dollar's strength was linked to euro weakness, driven by growing concerns over Europe's fiscal deficits, particularly France's deteriorating finances. French government bond yields surged, widening the spread with German bonds to its highest since the 2011 debt crisis.

The yen-dollar exchange rate was around 158.2 yen, a decline of 0.6 yen from the previous day. After hitting a low of 152.1 yen earlier this month, the yen has been trending weaker against the dollar.