Won-Dollar Exchange Rate Returns to 1200 Won Range... 'Concerns Over COVID-19 Resurgence'

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] On the morning of the 12th, the won-dollar exchange rate surged, returning to the 1200-won level.

As of 9:26 a.m. that day, the won-dollar exchange rate was trading at 1208.2 won, up 11.43 won from the previous day in the Seoul foreign exchange market. The exchange rate opened at 1207.2 won, up 10.8 won, maintaining a sharp rise in the early trading session.

Fear that the novel coronavirus infection (COVID-19) could resurge has increased risk-averse sentiment. Johns Hopkins University in the U.S. announced that the total number of COVID-19 cases in the country has surpassed 2 million. In addition, health experts stated that signs of a second wave are appearing in four U.S. states: Arizona, Texas, Florida, and California.

Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), also contributed to investors' awareness of the negative economic outlook by forecasting on the 10th (local time) after the Federal Open Market Committee (FOMC) meeting that the adverse effects of COVID-19 could last a long time and announcing that zero interest rates would be maintained until 2022. Major indices on the New York Stock Exchange all plunged overnight. The Dow Jones Industrial Average and the S&P 500 fell by 6.9% and 5.89%, respectively, and the Nasdaq, which had surpassed the '10,000 mark,' dropped 5.27%.

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