As the won-dollar exchange rate rises rapidly lately, which accompanied the depreciation of the won against the Japanese yen, investors are paying increasingly keen interest in export stocks. Stock analysts recommended of the export stocks automotive stocks are worth paying special interest.
According to the Seoul foreign currency market on July 29, the won-yen exhange rate was closed at 942.77 won per 100 yen on the previous day. The rate once hit a high of 951.01 won mid-session, breaking the 52-week high record. This is the highest level since November 6 last year when the rate was 951.46 won.
Bae Sung-young, analyst with Hyundai Securities, said, "The won-yen exchange rate began climbing up from the 910s early this month to more than 950 won. It seems like the rate is moving away from a long-term decline trend."
The main reason for the rising won-yen currency rate has to do with the fact that the U.S. dollar is appreciating against emerging market country currencies while the Japanese yen is showing a relative strength.
The yen tends to appreciates when uncertainties increase in international financial markets as it is considered one of the safest currency assets. The Bank of Japan slowing its speed of quantitative easing recently was also a factor in the yen's strength.