“Korean Won to US Dollar Exchange Rate Rises on Weakening Asian Currencies”

On the 24th, the won/dollar exchange rate is on the rise in the early trading period.

As of 9:05 am in the Seoul foreign exchange market on this day, the won-to-dollar exchange rate is 1330.5 won, up 2.3 won from the previous trading day. After opening at 1332.5 won, up 4.3 won, the exchange rate is continuing the early trend of 1330 won.

The exchange rate is facing upward pressure as Asian currencies such as the renminbi weaken while the US tightening policy is prolonged. In particular, the weakening of the won is becoming more prominent as sluggish exports and continuing trade deficits add to geopolitical concerns.

Min Kyung-won, a researcher at Woori Bank, said, “The dollar fell over the weekend, but major Asian currencies such as the won, yuan, and Singapore dollar showed weakness reflecting concerns over additional hikes by the Federal Reserve.”

“There is a high possibility that the unfavorable atmosphere for risky currencies will be prolonged as investor sentiment in the stock market deteriorates due to concerns about fixed inflation (inflation),” he said. However, exporters’ negotiating volume (selling dollars) and the foreign exchange authorities’ wary of fine adjustments are factors that limit the rise.

At the same time, the won/yen arbitrage exchange rate is 993.76 won per 100 yen. It rose by 0.9 won from the standard price (992.86 won) at 3:30 pm on the previous trading day.

Correspondent Changhyun Lee of Hellotti |