Won-Dollar Exchange Rate Starts Up 3.2 Won... Hong Nam-ki: "High KRW Appreciation Rate, Active Response" (Update)

6.0% Won Appreciation Rate Compared to Late September
Higher Than China at 4.3% and Australia at 2.9%

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] On the 19th, the won-dollar exchange rate started higher as the government issued a warning message regarding the recent sharp appreciation trend of the Korean won.

On that day, in the Seoul foreign exchange market, the won-dollar exchange rate opened at 1107.0 won, up 3.2 won from the previous day. The previous day, the won-dollar exchange rate closed at 1103.8 won, down 2.8 won, marking the lowest level in 29 months since June 15, 2018 (1097.7 won).

The government explained that the speed of the won's appreciation is steep and stated that it will actively respond to stabilize the market.

Deputy Prime Minister Hong said at the Emergency Economic Central Countermeasures Headquarters meeting held at the Government Seoul Office that "excessive exchange rate fluctuations are never desirable," and "the government is closely monitoring the current market situation with heightened vigilance and will actively respond at any time to stabilize the market."

He explained, "Concerns among our economic agents are growing as the exchange rate decline continues in the recent foreign exchange market," adding, "Over the past two months, the won has appreciated at the fastest pace among major world currencies, and the won exchange rate continues to show a one-sided trend."

Compared to the end of September, Korea's currency appreciation rate is 6.0%, the fastest among major countries. It exceeds that of China (4.3%), Japan (1.5%), the Euro (1.7%), and Australia (2.9%). During the same period, the value of the dollar fell by 2.0%.

The government also warned on the 16th that "recent exchange rate fluctuations are at an excessive level" and "will actively respond to movements that artificially induce expanded fluctuations."

While the won-dollar exchange rate was around 1200 won in July alone, it is now threatened at the 1100 won level.

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