Seoul’s newly launched 24-hour foreign exchange trading system debuted with limited volatility, as the won-dollar exchange rate remained stable during its initial early-morning operating hours.
During the new 2 a.m. to 6 a.m. trading window, the won-dollar rate initially hovered around 1,531 won per dollar, then eased to 1,529 after 4 a.m., and settled near 1,530 by the segment’s close. These figures are based on combined data from Seoul Money Brokerage Services and Korea Money Brokerage Corp.
Volatility within the regular Seoul trading hours (6 a.m. to 3:30 p.m.) was more pronounced yet remained contained. On Monday, the won-dollar rate opened at 1,527.60, surged to 1,537.50 shortly after the daytime market commenced, before quickly pulling back to 1,526.70 later that morning. The regular session concluded at 1,530.30.
Monday officially marked the launch of Seoul’s round-the-clock won-dollar trading, extending transaction hours from 6 a.m. to 6 a.m. the following day, excluding weekends and January 1st.
This quiet inaugural period helps to alleviate initial concerns regarding potential amplified won swings due to thinner overnight liquidity, especially during major global market events occurring outside traditional Seoul trading hours. The absence of significant overnight catalysts contributed to contained volatility on this crucial first day.
Despite the extended hours, liquidity outside Seoul’s core daytime session remained relatively thin. Trading activity largely concentrated during regular hours and around the 3:30 p.m. close, with a noticeable drop in activity during the newly introduced early-morning window.
According to separate data from Korea Money Brokerage, Monday’s total won-dollar trading volume reached an impressive $2.32 billion. This figure more than doubles the $1.05 billion recorded on the preceding Friday and exceeds June’s daily average of approximately $2 billion, indicating robust initial engagement within the expanded FX market.
Concurrently, the dollar index, which tracks the U.S. dollar against six major global currencies, briefly climbed above 101 on Monday. It later pared some gains, settling around the 100.8 level by early Tuesday.
The won began Tuesday’s session at 1,530 per dollar at 6 a.m., showing a slight strengthening of 0.3 won compared to Monday’s daytime close. By midday, the currency was trading around 1,522.
jwc
