Won-Dollar Exchange Rate Declines... Easing Tensions in Ukraine

On the 16th, when the KOSPI index started higher due to significantly eased concerns over Russia's invasion of Ukraine, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Seo So-jeong] The won-dollar exchange rate is declining amid easing tensions between Russia and Ukraine.

On the 16th, in the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,196.7 won, down 3.1 won from the previous day. As of the morning, the won-dollar exchange rate is fluctuating in the mid-to-late 1,190 won range.

The previous day's news of partial withdrawal of Russian military units stationed near the Ukraine border eased risk aversion sentiment, leading to a reversal from the previous day's rebound near the 1,200 won level in the won-dollar exchange rate.

As the crisis over the imminent Ukraine situation subsides, the dollar's strength has also temporarily weakened.

However, experts predict that the decline in the won-dollar exchange rate will be limited as the Russia-Ukraine standoff may continue.

In particular, with the U.S. Producer Price Index (PPI) for January exceeding expectations and the upcoming release of the Federal Open Market Committee (FOMC) minutes, concerns over a tightening policy have increased, suggesting that the dollar's strength may continue for the time being.

Oh Chang-seop, a researcher at Hyundai Motor Securities, said, "From a supply and demand perspective, whether foreigners are net buyers of stocks is important," adding, "Uncertainty about external conditions remains, so the dollar's strength will be valid."

The Bank of Korea's foreign exchange market team stated, "We are closely monitoring the Ukraine situation," and added, "If the situation worsens, we will consider market stabilization measures."

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