On the 8th, the exchange rate of Korean won against the US dollar in Seoul foreign exchange market fell to 1, 149.9 won, which was 1.2 won lower than the previous trading day, the lowest in 35 months (after 1 17 in 2000). When the spot exchange rate dropped to 65,438+0,65,438+047.5 won, Korean state-owned and commercial banks bought a lot of dollars according to the government's intention, thus avoiding the rapid decline of the exchange rate. On that day, the amount of US dollars bought by the government through the bank was about US$ 654.38+0 billion, which was the largest amount of US dollars bought by the Korean government to protect the exchange rate after the finance ministers of the Group of Seven (G7) proposed the appreciation of Asian currencies on the 20th of last month.
The direct reason for the sharp decline in the exchange rate of Korean won against the US dollar is that the exchange rate of Japanese yen against the US dollar fell to 1 USD 1 10 yen in Tokyo foreign exchange market. On the 9th, the exchange rate of the won against the US dollar continued to fall, closing at 1 USD 1. 148.6 won.