COVID-19 Easing? Optimism Supports Slightly Weakening Exchange Rate

[Asia Economy Reporter Kim Eun-byeol] On the morning of the 8th, the won-dollar exchange rate showed a slight decline, supported by optimism that the spread of the novel coronavirus disease (COVID-19) in the United States would subside.

As of 9:38 a.m. on the same day, the won-dollar exchange rate in the Seoul foreign exchange market stood at 1,221.68 won per dollar, up 0.81 won from the previous day. The exchange rate started trading at 1,216.0 won per dollar, down 5.2 won, but early in the session, it gave back the decline and was hovering around a stable level.

In the U.S. market, optimism about COVID-19 is gaining momentum, restoring investor sentiment. The dollar index, which reflects the value of the U.S. dollar against six major currencies, stopped its four-day consecutive rise on the 7th (U.S. local time) and fell 0.85% from the previous session to 99.856.

Steven Mnuchin, U.S. Treasury Secretary, raised expectations for the containment of the epidemic in a media interview, saying, "President Donald Trump is looking into how to reopen parts of the economy." News that British Prime Minister Boris Johnson, who was moved to the intensive care unit due to worsening COVID-19 symptoms, has no signs of pneumonia and is not on a ventilator also had a positive effect on the financial market.

However, caution against excessive optimism resurfaced as the number of deaths in New York State increased again. Governor Andrew Cuomo announced in a briefing that 731 COVID-19 deaths were added in one day, the highest daily death toll in New York State.

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