Soaring Won-Dollar Exchange Rate Enters a Breather Phase

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] The won-dollar exchange rate, which surged to the 1,220 won level the previous day, rose immediately after the market opened on the 25th but is now showing a downward trend.

As of 9:48 a.m. in the Seoul foreign exchange market, the won-dollar exchange rate is trading at 1,216.60 won, down 3.6 won from the previous day's closing price. Domestically, the number of confirmed cases of the novel coronavirus infection (COVID-19) has surged, causing the won-dollar exchange rate to spike by 30 won over the past four trading days. This is the result of deteriorated investor sentiment toward won-denominated assets in the global foreign exchange market.

Given the recent sharp rise in the exchange rate, there appears to be a movement to buy won at a low price today, entering a consolidation phase.

Experts believe that future exchange rate movements will depend on how widely COVID-19 spreads. Yumi Kim, a researcher at Kiwoom Securities, said, "If the impact of COVID-19 spreads globally, the possibility of further exchange rate increases should be kept open," adding, "In that case, the rate could rise to the mid-1,230 won range."

This content was produced with the assistance of AI translation services.