The Won-Dollar Exchange Rate Rises to 1291.2 Won Intraday... Attempt to Break Yearly High

On the 17th, dealers are working in the dealing room of Hana Bank in Euljiro, Seoul, as the KOSPI index briefly fell below the 2400 level in early trading due to the impact of a sharp decline in global stock markets. The intraday break below 2400 on the KOSPI is the first in about 1 year and 7 months since November 5, 2020 (2370.85). Photo by Moon Honam munonam@

[Asia Economy Reporter Seo So-jung] As concerns over a global economic recession grow, the won-dollar exchange rate has once again surpassed the 1,290 won level.

On the 17th, around 9:30 a.m. in the Seoul foreign exchange market, the won-dollar exchange rate surged to 1,291.2 won, marking a new high.

The won-dollar exchange rate opened at 1,288.0 won, up 2.4 won from the previous day's closing price, broke through the 1,290 won level again, and has been fluctuating between 1,288.0 and 1,291.0 won in the early trading session.

Following the U.S. Federal Reserve's 'giant step' of raising interest rates by 0.75 percentage points at once, signaling a high-intensity tightening, and with the Bank of England (BOE) and the Swiss National Bank also joining in raising benchmark interest rates, market anxiety is increasing amid concerns that global liquidity reduction will slow the economy.

Although the dollar index fell overnight as Europe adopted tightening policies, showing weakness in the dollar, the structural weakening pressure on the Korean won appears to be stronger. Additionally, the Chinese State Council's announcement to refrain from excessive economic stimulus has heightened concerns about economic slowdown. However, the foreign exchange authorities' vigilance operating in the low 1,290 won range is expected to act as a factor limiting upward pressure.

Moon Hong-chul, a researcher at DB Financial Investment, said, "As recession concerns spread, there is a high possibility that the won-dollar exchange rate will surpass the intraday record high (1,293.2 won on the 15th) within a short period," adding, "Given the global economic slowdown concerns, the won-dollar exchange rate should keep its upper range open for the time being."

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