Won-Dollar Exchange Rate at 1130 Won... Hong Nam-ki "Exchange Rate Imbalance Not Desirable, Monitoring Closely"

[Asia Economy Reporter Eunbyeol Kim] Ahead of the US presidential election, as the value of the US dollar hit its lowest point in seven weeks, the won-dollar exchange rate is also expected to continue its downward trend for the time being. Although there may be a brief correction due to the recent sharp decline in the exchange rate, the overall direction is expected to be maintained.

As of 1:11 PM on the 22nd in the Seoul foreign exchange market, the won-dollar exchange rate is trading at 1,135.03 won, up 0.31% from the previous day.

Although the won-dollar exchange rate showed an upward trend on this day due to the recent sharp drop, experts believe that the dollar's weakness and the yuan's strength will continue for the time being, leading the won-dollar exchange rate to maintain its downward flow. The exchange rate, which was in the 1,180 won range in mid-last month, has fallen by about 50 won in a month, suggesting that after a brief correction, it may decline again. The previous day, the exchange rate closed at 1,131.9 won per dollar, down 7.5 won. This is the lowest level in one year and seven months since March 22 of last year (1,130.1 won) based on the closing price.

In particular, the market expects the foreign exchange authorities to tolerate the exchange rate decline for the time being, based on remarks made by Bank of Korea Governor Lee Ju-yeol at a press conference following the Monetary Policy Committee meeting on the 14th. At that time, Governor Lee said, "The impact of the exchange rate on our country's exports is not as significant as in the past," explaining, "The domestic export structure has become more advanced, and the exchange rate is influenced more by global demand and international trade conditions, especially recently by the COVID-19 situation."

Market experts expect the won-dollar exchange rate to remain around the 1,120 to 1,130 won range for the time being. However, they do not see a high possibility of the support level of 1,100 won being broken.

Meanwhile, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki said at the National Assembly's Planning and Finance Committee comprehensive audit on the same day, "It is not desirable for the exchange rate to be excessively skewed in one direction." In response to a related question from Jeong Il-young, a member of the Democratic Party of Korea, he said, "The government is closely monitoring the exchange rate market situation."

Deputy Prime Minister Hong explained, "Overall, there is no major problem in domestic foreign exchange supply and demand balance, but it is judged that there was a psychological impact as the won showed synchronized strength with the yuan's appreciation." He added, "We will closely monitor any abnormal movements of the exchange rate that deviate from foreign exchange supply and demand or our economy's fundamentals and will promptly strengthen market stabilization measures."

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