USD-KRW Exchange Rate Plummets 20 Won on the 2nd... Largest Drop in Over 3 Years (Comprehensive)

[Asia Economy Reporter Kim Eun-byeol] On the 2nd, the KRW-USD exchange rate plunged by 20 won, marking the largest drop in over three years.

On that day, in the Seoul foreign exchange market, the KRW-USD exchange rate closed at 1,193.7 won per dollar, down 20.0 won from the previous trading day's closing price. This decline was the largest since January 5, 2017 (a 20.1 won drop), marking the biggest fall in 3 years and 2 months.

The exchange rate started at 1,205.0 won, down 8.7 won, and the decline widened. As the drop deepened, by around 11:30 a.m., the rate fell below the 1,200 won level, and the decline continued to grow thereafter.

During the session, news of a projectile launch from North Korea slightly reduced the decline, but the impact was not significant.

The strengthening of the won is analyzed to reflect expectations that various countries will roll out stimulus measures as the novel coronavirus disease (COVID-19) spreads worldwide. The U.S. Federal Reserve (Fed) issued an emergency statement on the 28th of last month (local time), stating that it "will act appropriately and use our tools to support the economy," raising expectations for a base interest rate cut.

Haruhiko Kuroda, Governor of the Bank of Japan (BOJ), also stated in a special statement on the same day that efforts will be made to secure financial market stability.

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