Won strengthens more than 30 won against dollar, closing at 1,525.6

Lowest in 12 trading days; authorities suspected of intervening

South Korea's foreign exchange reserves reversed course to rise within a month as foreign currency deposits at financial institutions increased, even as the won-dollar exchange rate remained elevated in the mid-1,500 won range throughout June. According to the Bank of Korea, reserves stood at $427.36 billion as of end-June, up $370 million from $426.99 billion at the end of the previous month. An employee sorts dollar bills at Hana Bank's counterfeit response center in Jung-gu, Seoul, on Thursday morning. (Yoon Chang-bin)

The won strengthened more than 30 won against the dollar on Thursday, briefly advancing to the 1,525 won level amid a broader global weakening of the dollar during trading.

The won closed at 1,525.60 won per dollar on the Seoul foreign exchange market, up 30.20 won from the previous session's closing price.

The currency opened at 1,544.50 won, up 11.30 won from the prior session. It briefly gave back some ground to 1,548.90 won just after the open, but spent the afternoon fluctuating in the low-to-mid 1,540 won range before resuming its advance.

The mood shifted sharply around 3 p.m., when a large volume of dollar selling — believed to be intervention by monetary authorities — flooded the market, widening the move and pushing the rate as low as 1,525.10 won during trading.

The global dollar also weakened at the same time, lending further support to the won. The US Dollar Index (DXY), which measures the dollar against a basket of six major currencies, fell to around 100.71.

Market participants said that with authorities' commitment to stabilizing the market now confirmed, the near-term direction of the exchange rate will hinge on whether further intervention follows and on broader global dollar trends.

forest@heraldcorp.com